Gold Rallies to Above 1230 on Asia Demand

Gold rebounded from a two-week low as investors weighed increased physical demand before Federal Reserve policy makers begin a two-day meeting at which they are expected to end a bond-buying program.

Bullion for immediate delivery rose as much as 0.5 percent to $1,232.40 an ounce, and traded at $1,231.32 at 11:06 a.m. in Singapore, according to Bloomberg generic pricing. The metal earlier dropped to $1,222.62, the lowest price since Oct. 15, and has retreated 1.8 percent over the past four days in the longest losing streak since August.

Gold slumped 6.2 percent last month as the dollar advanced and holdings in exchange-traded products shrank. Fed officials are assessing the timing of rate increases after data yesterday showed the number of contracts to buy existing homes rose less than forecast in September. Demand in China and India, the largest buyers, typically accelerates in the fourth quarter during the festive periods and wedding season.

Bloomberg

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