Gold retreats after rally as stronger dollar reduces demand

London (Dec 2)   Gold today retreated, after the biggest one-day rally in more than a year, as a stronger dollar curbed demand for the metal as a protection of wealth.

 Gold fell 1.4 per cent to $ 1,195.65 an ounce and silver dropped 1.7 per cent to $ 16.18 an ounce. It rebounded yesterday from a five-year low of $ 14.42 to settle 6.5 per cent higher, the biggest gain since January 2012.

 Gold jumped 3.8 per cent yesterday, reaching a one-month high. It rebounded from a 3-week low as crude oil reversed a drop to the lowest in 5-yearsand as some investors closed out bets on lower prices. 

The greenback advances to the highest since 2009 yesterday amid expectstions the Federal Reserve will raise interest rates next year.

Source: IndiaTimes