Gold Near 3 Week Low Before Fed and NFP

Gold held below a three-week high in New York as investors awaited U.S. data that may strengthen the dollar and boost the case for the Federal Reserve to slow stimulus. Silver declined.

The Bloomberg Dollar Spot Index, a measure against 10 major currencies, traded near an almost four-month high before the U.S. central bank releases minutes of its December meeting. The ADP Research Institute may say today that private payrolls in the U.S. rose by 200,000 workers last month, according to the median estimate of economists compiled by Bloomberg.

The Federal Open Market Committee decided at the Dec. 17-18 meeting to cut monthly bond purchases to $75 billion from $85 billion starting this month, and San Francisco Fed President John Williams said yesterday the program may end this year. Bullion slid 28 percent last year, the most since 1981, as some investors lost faith in the metal as a store of value. Prices rose as much as 5.6 percent since setting a six-month low on Dec. 31, partly as physical demand increased in China.

via Bloomberg

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