Gold retreated after the biggest one-day rally in more than a year as investors weighed the outlook for a stronger dollar against a rebound in oil prices. Silver, platinum and palladium dropped. Bullion for immediate delivery declined as much as 0.7 percent to $1,203.45 an ounce, and traded at $1,206.51 at 3:26 p.m. in Singapore, according to Bloomberg generic pricing. The metal rallied yesterday to $1,221.43, the highest level since Oct. 30, after climbing from a three-week low of $1,142.88 as some investors ended bets on lower prices. Gold advanced 3.8 percent yesterday, the most since Sept. 2013, as crude recovered from a five-year low and the Bloomberg Dollar Spot Index fell from the highest since 2009. The gauge of the U.S. currency remains 8.3 percent higher this year amid expectations that the Federal Reserve will start to raise interest rates next year, hurting gold’s allure. Assets in the SPDR Gold Trust, the largest exchange-traded product backed by the metal, shrank 10 percent in 2014 to a six-year low. “The U.S. dollar still appears to be the favored currency and may provide greater headwinds for gold,� James Steel, an analyst at HSBC Securities (USA) Inc., wrote in a note. “Shorts exiting the market will provide only near-term strength,� he said, referring to the closure of wagers on lower prices. Gold dropped for a third month in November as the Fed assessed the timing of rate rises, while other central banks added to stimulus, strengthening the dollar. Policy makers at the European Central Bank and Bank of England meet Dec. 4. Lagarde’s View The Fed will raise rates delicately and sensibly, while the Bank of Japan takes steps to boost inflation and euro-area policy makers seek to spur growth, International Monetary Fund Managing Director Christine Lagarde said yesterday. Oil’s drop is “net-net� good news for the global economy, she said. West Texas Intermediate crude traded near $70 a barrel today as investors weighed OPEC’s decision to let the market curb a global glut. The benchmark posted the biggest gain in more than two years yesterday, reversing a 3.7 percent drop. Gold for February delivery fell 1 percent to $1,206.50 an ounce on the Comex in New York, after climbing yesterday to $1,221, the highest since Oct. 29. Most-active futures slumped yesterday to a three-week low of $1,141.70, after Swiss voters rejected a plan for their central bank to acquire bullion. Silver for immediate delivery lost 0.8 percent to $16.333 an ounce, after prices rebounded yesterday from a five-year low of $14.4235 to end 6.5 percent higher, the biggest gain since January 2012. Spot platinum fell 1 percent to $1,227 an ounce, after a 3.2 percent advance yesterday that was the most since August 2013. Palladium decreased 0.3 percent to $804.25 an ounce, declining for a second day. To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net To contact the editors responsible for this story: James Poole at jpoole4@bloomberg.net Jake Lloyd-Smith

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