Gold declined for a second day as reports on U.S. employment, manufacturing and consumer confidence signaled improvement in the world’s largest economy, boosting the dollar. Gold for immediate delivery lost as much as 0.4 percent to $1,707.28 an ounce and was at $1,708.08 at 1:40 p.m. in Singapore. Prices are 0.2 percent lower this week. Bullion for December delivery fell as much as 0.5 percent to $1,707.40 on the Comex, and was at $1,707.80, 0.2 percent lower this week. Fewer Americans than forecast filed for jobless claims last week, companies expanded payrolls in October by the most in eight months, and the Institute for Supply Management’s U.S. factory index topped estimates, reports showed yesterday. The dollar gained against the majority of its most-traded counterparts as the Dollar Index (DXY), which tracks the greenback against a basket of six currencies, advanced for a second day. “The firmer dollar on the heels of better-than-expected U.S. data weighed on prices,� Australia & New Zealand Banking Group Ltd. analysts led by Mark Pervan wrote in a note today. The metal usually trades counter to the U.S. currency. “Near- term attention remains on the U.S. job report later today.� Data today from the Labor Department may show while U.S. employers took on 125,000 workers in October, that wasn’t enough to keep the jobless rate from rising to 7.9 percent from 7.8 percent, according to median forecasts of economists surveyed by Bloomberg. The Federal Reserve said on Oct. 24 it will maintain $40 billion in monthly purchases of mortgage debt and probably hold interest rates near zero until 2015 to spur growth and cut unemployment. Record Holdings Holdings in exchange-traded products backed by bullion expanded to a record 2,588.44 metric tons yesterday, according to data tracked by Bloomberg. Gold of 99.99 percent purity fell as much as 0.5 percent to 343.9 yuan a gram on the Shanghai Gold Exchange, and was at 344 yuan. Trading volumes were 2,321 kilograms yesterday from 2,792 kilograms on Oct. 31. Spot silver declined as much as 0.8 percent to $32.01 an ounce and was at $32.0106, little changed this week. Platinum for immediate delivery dropped as much as 0.9 percent to $1,557.50 an ounce and traded that price. Palladium lost as much as 0.7 percent to $609 an ounce and was at $610. To contact the reporter for this story: Phoebe Sedgman in Melbourne at psedgman2@bloomberg.net To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

Source