Gold rallied from an eight-month low, snapping three days of losses, on speculation that reduced prices may spur purchases before the Federal Reserve begins a two-day policy meeting.
Bullion for immediate delivery rose as much as 0.4 percent to $1,235.07 an ounce and traded at $1,233.67 by 11:58 a.m. in Singapore, according to Bloomberg generic pricing. The metal dropped earlier to $1,225.67, the lowest since Jan. 9. The 14-day relative-strength index held below the level of 30 for a third day today, signaling that prices may be poised to rebound.
Gold is heading for the first quarterly loss this year as the Bloomberg Dollar Spot Index climbed 4.7 percent since the end of June. The precious metal halted a 12-year rally in 2013 on expectations the Federal Reserve will reduce monthly asset purchases, which it has done six times. The Fed begins a two-day policy meeting tomorrow after data on Sept. 13 showed retail sales rose in August by the most in four months.