Gold retreated in Asia as the dollar resumed its climb against the euro, diminishing interest in the metal as an alternative investment. Bullion declined as the dollar gained for the third day in four against the euro. The European currency may fall 15 percent against the dollar by mid-year as European banks restrict lending and sovereign bond spreads widen due to the deepening global economic slowdown, according to BNP Paribas SA. “Gold’s inverse relationship with the dollar is still pretty strong,” Jiang Zhiwei, an analyst at BOC International, said in a report. “That and risk aversion is what’s been driving the market in the past few months.” Bullion for immediate delivery fell 0.2 percent to $852.33 an ounce at 10:44 a.m. in Singapore. Gold for February delivery gained 0.2 percent to $851.90 in after-hours electronic trading on the Comex division of the New York Mercantile Exchange. The dollar gained as much as 0.6 percent to $1.2944 against the euro and last traded at $1.2997. Still, demand for gold from investors seeking a haven will keep prices supported, said Jiang. Gold held in exchange-traded funds rose to a record last year, as the global economic slowdown boosted the metal’s appeal, the World Gold Council said Jan. 21. Among other precious metals for immediate delivery, silver lost 0.4 percent to $11.29 and palladium declined 0.3 percent to $184 an ounce. Platinum gained 1 percent to $933.5 an ounce as of 10:44 a.m. in Singapore.

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