Gold fluctuated near the highest level in more than three weeks as investors weighed speculation that the Federal Reserve may delay a reduction in stimulus until next year against signs of slowing demand in China.
Bullion for immediate delivery lost 0.2 percent to $1,337.55 an ounce by 1:57 p.m. in Singapore after climbing 0.2 percent. Prices touched $1,344.85 yesterday, the highest since Sept. 30. Gold for December delivery lost 0.4 percent to $1,337.20 an ounce on the Comex in New York.
Gold is set for the first annual drop since 2000 as some investors lost faith in the metal as a store of value and on expectation the Fed will slow its $85 billion monthly bond purchases as the economy improves. U.S. employers added 148,000 workers in September from a revised 193,000 gain in August, the Labor Department said yesterday. The median of forecasts by 93 economists in a Bloomberg survey was an increase of 180,000.
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