Gold may rebound after falling the most in a week yesterday as investors sought to protect their wealth against declining currencies and economic turmoil. Gold for immediate delivery traded little changed at $1,875.02 an ounce at 11:08 a.m. in Singapore, swinging between gains and losses as equities rebounded. Bullion dropped from a record $1,921.15 yesterday as the dollar advanced for a sixth day against a six-currency basket including the franc after the Swiss central bank set a ceiling on the exchange rate. “We’re going to have pullbacks but there’s a lot of opportunity in gold today and it’s a bull market that will last many more years,” Robert Lutts, president of Cabot Money Management, said in a Bloomberg Television interview. Futures in New York rose as much as 0.5 percent to $1,883.20 an ounce, before trading at $1,877.50. The December- delivery contract touched a record $1,923.70 an ounce yesterday. German Finance Minister Wolfgang Schaeuble said yesterday Greece won’t get its next bailout installment unless it meets austerity goals under the aid package while Greek finance minister Evangelos Venizelos pledged to accelerate budget measures. “What’s going on in Europe right now, we’re going to have to come up with another half a trillion, or maybe a trillion dollars to back the banks,” said Lutts. President Barack Obama in a Sept. 8 address is “going to talk about new fiscal programs and new costly programs for our government. The debt explosion’s just beginning,” he said. Obama plans to propose boosting job growth by injecting more than $300 billion into the economy next year mostly through tax cuts and infrastructure spending. Data last week showed the U.S. jobs market stalled in August. Safe Haven “A stronger dollar does usually mean a lower gold price,” Julian Jessop, chief global economist at Capital Economics Ltd., wrote in an e-mail. “However, we see no reason why both the dollar and gold cannot benefit from increased safe haven demand in the event of a further escalation of the financial crisis in the euro-zone.” The Dollar Index fell 0.2 percent today as the regional benchmark MSCI Asia Pacific Index climbed for the first day in four, eroding demand for safer assets. The Swiss franc was little changed after weakening the most ever against the euro yesterday as the central bank said it will defend the minimum rate target on the currency with the “utmost determination.” “The upside for the franc is now limited, some of the demand for safe havens should be diverted to gold, supporting its price,” Jessop wrote. “We continue to expect gold to rise to $2,000 this year.” Wealth Protection Gold, up 32 percent this year, is poised for an 11th year of gains, the longest rally since at least 1920, as investors seek to protect their wealth from depreciating currencies, declining equities and accelerating consumer prices. “Gold and Treasuries, particularly longer duration bonds, exhibited a significant jump in correlation, as the two started moving in lockstep with each other” after Standard & Poor’s cut the U.S. credit rating on Aug. 5, according to Michael A. Gayed, chief investment strategist at Pension Partners LLC in New York. “It appears that gold is now serving as a viable alternative to treasuries during market turmoil,” Gayed wrote in an e-mail. Treasury 10-year note yields dropped to an all- time low yesterday as bullion rallied to its highest ever. “Even during the dark days of the Lehman Crash in 2008 this was not the case,” Gayed said, referring to the collapse of Lehman Brothers Holdings Inc. which triggered the worst recession since World War II. “It may be gold is behaving like this because investors are concerned about further debt downgrades, and you can’t downgrade a metal.” Platinum for immediate delivery was little changed at $1,851.90 an ounce, trading below gold for a third day. Cash silver and palladium were also little changed at $41.9650 an ounce and $753.50 an ounce respectively. To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net To contact the editor responsible for this story: Richard Dobson at rdobson4@bloomberg.net

Source