Gold declined as rally to a record prompted some investors to sell and the dollar’s advance eroded bullion’s appeal as an alternative investment against currencies. Gold for immediate delivery fell 0.3 percent to $1,364.40 an ounce at 3:25 p.m. in Seoul, paring earlier gains. The metal has advanced 24 percent this year, reaching an all-time high of $1,424.60 an ounce on Nov. 9. December-delivery futures were little changed at $1,363.70 an ounce on the Comex in New York. “It would be rather unusual to see gold running up without any correction,” said Lee Suk Jin, an analyst with Tong Yang Securities Inc. in Seoul. “The uptrend won’t be easily turned over because gold will continue to be favored amid ample dollars in the market.” Bullion is set for a 10th annual gain on bets the Federal Reserve’s plan to buy back more bonds will erode the value of the dollar. Gold typically moves inversely to the greenback. The U.S. currency climbed as much as 0.3 percent today against a basket of six major counterparts. “During the recent run-up, markets have seen strong investment inflows,” Stefan Graber, an analyst with Credit Suisse Group AG, wrote in a report today. “Given the sizable inflows, we think profit-taking pressure could extend over the next few days.” Hedge-fund managers and other large speculators pared their net-long position in New York gold futures in the week ended Nov. 2, according to U.S. Commodity Futures Trading Commission data. China Tightening Spot gold lost 2.8 percent on Nov. 12, the most since July 1, as speculation that China may tighten monetary policy to cool inflation sparked a commodity selloff. The country may raise its benchmark one-year lending rate to 5.81 percent by the end of the year from 5.56 percent, and the deposit rate may climb to 2.75 percent from 2.5 percent, according to a Bloomberg survey of analysts published Nov. 12. The nation’s inflation rate topped a two-year high last month. Silver for immediate delivery lost 0.7 percent to $25.8925 an ounce at 3:29 p.m. in Seoul, reversing earlier gains of as much as 1.6 percent to $26.49. The metal tumbled 5.9 percent on Nov. 12, the biggest loss since Feb. 4. Cash palladium fell 0.9 percent to $672.25 an ounce after earlier rising to $686.50. Spot platinum was 0.5 percent lower $1,680.25 an ounce. To contact the reporter on this story: Sungwoo Park in Seoul at spark47@bloomberg.net To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

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