Gold held below a five-week high as a strengthening dollar curbed demand for a store of value, with a U.S. policy maker saying the Federal Reserve is getting closer to replacing its vow to hold rates low for a considerable time.
Bullion for immediate delivery rose and fell at least 0.2 percent, and traded at $1,195.88 an ounce at 8:56 a.m. in Singapore from $1,198.28 yesterday, when prices fell 1.1 percent, according to Bloomberg generic pricing. The metal on Dec. 1 slumped to a three-week low of $1,142.88, before rallying to $1,221.43, the highest level since Oct. 30, as oil whipsawed.
The Bloomberg Dollar Spot Index was near the highest since 2009 before data this week that may show American employers added more than 200,000 jobs for a 10th month, boosting the case for tighter U.S. monetary policy as stimulus in Europe and Japan increases. Oil, trading below $70 a barrel today, has collapsed into a bear market, benefiting the U.S. economy, according to Fed Vice Chairman Stanley Fischer, who said that officials are closer to getting rid of the “considerable time” language.
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