Gold traded near a two-week low in New York as a strengthened dollar cut demand for an alternative investment and on speculation physical buying slowed. Platinum was little changed as a mine strike in South Africa continued.
The Bloomberg U.S. Dollar Index, a measure against 10 currencies, was little changed after reaching the highest since Sept. 18 yesterday. Physical demand from China “weakened markedly” in the past few days, Mumbai, India-based AnandRathi Commodities Ltd. said today in a report.
Gold is set for the first annual drop in 13 years as some investors lost faith in the metal as a store of value. The Federal Reserve last week maintained its $85 billion in monthly bond purchases, noting that there are signs of “underlying strength” in the economy. The central bank will start cutting debt buying in March, according to an Oct. 17-18 Bloomberg News survey of economists.