Gold at $1205 on Stronger U.S. Economy

Gold retreated after climbing the most in two months as the dollar advanced toward a four-year high, reducing demand for an alternative investment. Platinum extended its rebound from a five-year low and palladium rallied.

Gold for immediate delivery fell as much as 0.4 percent to $1,203.02 an ounce, and traded at $1,204.44 by 11:08 a.m. in Singapore, according to Bloomberg generic pricing. The metal dropped yesterday to $1,183.24, the lowest since Dec. 31, before climbing to end 1.3 percent higher for the biggest increase since August.

The Bloomberg Dollar Spot Index rose 0.3 percent today after dropping 0.9 percent yesterday. The gauge closed on Oct. 3 at the highest since June 2010 after data showed that the U.S. jobless rate declined to a six-year low and employers hired more workers in September than economists estimated. The Federal Reserve is considering the timing for the first rate increase since 2006 amid the recovery.

Bloomberg

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