LONDON: Gold today declined, cutting the first weekly gain in five, as a stronger dollar curbed demand for the metal as an alternative investment.
Gold lost 0.2 per cent to USD 1,661.15 an ounce. Prices are up 0.2 per cent this week, increasing this year's gain to 6.2 per cent. Silver also fell 0.2 per cent to USD 30.11 an ounce.
The dollar rose for the first time in three days versus the euro as US President Barack Obama is due to meet Democratic and Republican congressional leaders today as a year-end budget deadline approaches.
Data showing drops in Japanese consumer prices and factory output fanned speculation the central bank will heed government calls to step up cash infusions.
Bullion is set for a 12th straight annual gain as central banks from the US to China pledge more steps to spur economic growth. Holdings in gold-backed exchange-traded products rose by 0.6 tonnes to 2,631.7 tonnes, less than one tonne below the record set on December 20.
