Gold fell for a second consecutive day in London as a drop in crude oil and a stronger dollar sapped demand for the metal as a hedge against inflation and a weaker U.S. currency. Gold rose 5.8 percent last year, a record eighth annual advance. It was the best performing metal in the UBS Bloomberg CMCI Index of 26 raw materials, helping to protect investors as $30 trillion was wiped off equities. The dollar index, measuring the currency against six counterparts, rose for a third session, while oil traded in New York fell the most since Dec. 24. “Gold is going to look to dollar and oil short term,” said James Moore, an analyst at TheBullionDesk.com in London. “But the background of a big meltdown in global economies and geopolitical tension in the Middle East gives a broadly supportive picture.” Gold for immediate delivery fell $9.05, or 1 percent, to $870.40 an ounce as of 10:34 a.m. in London. Futures for February fell $13.30, or 1.5 percent, to $871 in electronic trading on the Comex division of the New York Mercantile Exchange. Gold may rise to about $1,000 in the first half, Moore said. Gold miners accounted for four of the top five performers in the 162-member Bloomberg World Mining Index last year. Randgold Resources Ltd., the Jersey, Channel Islands-based owner of two gold mines in Mali, advanced 60 percent, making it the biggest gainer in the FTSE 100 Index, which it joined last month. Gold will average $985 an ounce this year, compared with a previous forecast of $875, Standard Chartered Plc said in a Dec. 31 report. The metal should trade close to $1,000 by the end of the second quarter, the bank said. ‘Something Solid’ “The Fed has publicly stated they’re going to print as many dollars as necessary to prevent the system from melting down,” said Hans Goetti, chief investment officer at LGT Bank in Lichtenstein (Singapore) Ltd. “For me the conclusion is clear: if you want to keep your purchasing power you have to be in something solid like gold.” Gold imports by India, the world’s largest consumer, fell for the second straight month. Overseas purchases slumped to about 3 metric tons in December from 16 tons a year earlier, according to provisional estimates from the Bombay Bullion Association Ltd., a group of 230 traders. Among other metals for immediate delivery, silver dropped 29 cents, or 2.6 percent, to $11.10 an ounce. The metal fell 23 percent last year, its worst performance since 1984. Platinum dropped $2, or 0.2 percent, to $932.50 an ounce. It fell 39 percent last year, the steepest drop since at least 1988. Palladium fell $1.50, or 0.8 percent, to $185.50 an ounce. The metal dropped 49 percent last year, the most since 2001.

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