Gold held near a four-year low as investors extended sales from the largest bullion-backed exchange-traded product.
Bullion for immediate delivery rose as much as 0.4 percent to $1,144.62 an ounce and traded at $1,143.93 at 9:13 a.m. in Singapore, according to Bloomberg generic pricing. The metal yesterday dropped to $1,137.94, the lowest since April 2010, as the Bloomberg Dollar Spot Index climbed to a five-year high. The 14-day relative strength index was below 30 for a fifth day, signaling to some investors that prices may rebound.
Holdings in the SPDR Gold Trust contracted for a second day yesterday to the smallest since September 2008 as U.S. stocks rallied to records, curbing demand for a store of value. Gold is heading for the first consecutive annual decline since 2000 as the Federal Reserve prepares to raise interest rates amid an improving economy while other central banks seek to boost growth, spurring gains in the dollar.
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