Gold held below $1,300 an ounce as investors weighed a strengthening U.S. economy and dollar against signs of easing tensions around the world.
Bullion for immediate delivery traded at $1,282.61 an ounce at 9:32 a.m. in Singapore from $1,281.20 yesterday, when prices rose as much as 1.1 percent before ending 0.3 percent higher, according to Bloomberg generic pricing. The metal on Aug. 21 dropped to $1,273.14, the lowest level since June 18, on speculation the U.S. Federal Reserve will raise borrowing costs sooner than forecast.
The dollar climbed to its highest level in almost a year against the euro on speculation the Fed will increase rates next year, while the European Central Bank will add to stimulus. Data today may show German inflation stalled after a report yesterday showed U.S. consumer confidence rose to a seven-year high, sending the Standard & Poor’s 500 Index to a record.