Gold held losses from a six-week high as investors expected the Federal Reserve to end its bond-buying program this week and most European banks passed a test of their ability to weather a crisis, paring haven demand.
Bullion for immediate delivery lost as much as 0.3 percent to $1,227.51 an ounce, and traded at $1,230.53 at 1:04 p.m. in Singapore, Bloomberg generic pricing showed. The metal dropped from $1,255.34 on Oct. 21, the highest since Sept. 10, as global stocks recovered after earnings beat estimates. A fourth day of losses today would be the longest run since Aug. 21.
Fed policy makers meet Oct. 28-29, when they are expected to end monthly asset purchases as the U.S. economy shows further signs of recovery. Gold fell last week as holdings in the SPDR Gold Trust, the largest bullion-backed exchange-traded product, contracted to a six-year low and a gauge of the dollar against 10 counterparts advanced. None of Europe’s largest banks failed the European Central Bank’s stress test, a region-wide check that analysts described as credible.
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