Gold traded little changed after dropping 5.6 percent this year as sales from exchange-traded products pushed holdings to their lowest level in six months. Spot gold was at $1,582.30 an ounce at 9:43 a.m. in Singapore from $1,581.55 yesterday, after gaining and falling 0.1 percent. Holdings in ETPs dropped to 2,479.912 metric tons yesterday, contracting for a 15th day, according to data compiled by Bloomberg. Gold’s 12-year bull-run is under threat as signs of a U.S. recovery temper haven demand, boost the dollar and stoke a rally in equities. The U.S. currency strengthened against most of its 16 major counterparts today. The Dow Jones Industrial Average climbed to its fifth straight record close yesterday. “Some investors would rather put their money elsewhere, while others still fear macroeconomic uncertainties out there,� said Huang Fulong, an analyst at CITICS Futures Co., a unit of China’s largest listed brokerage. “ETF outflows have been relentless. However, China’s demand has stayed strong.� Daily volumes for the benchmark cash contract on the Shanghai Gold Exchange have been more than double the average in 2012 since Feb. 18, when it reached a record 22,024 kilograms, according to bourse data. Cash bullion of 99.99 percent purity lost 0.1% to 319.10 yuan a gram ($1,594.94 an ounce). Industrial output in China had the weakest start to a year since 2009, according to data on March 9. Fitch Ratings cut Italy’s credit rating by one level on March 8, renewing concern that Europe’s debt crisis may persist. Gold for April delivery rose as much as 0.2 percent to $1,581.60 an ounce on the Comex in New York, and traded at $1,580. Most-active prices are poised for a fourth daily gain in what would be the best run since August. Spot silver increased 0.2 percent to $29.0138 an ounce, and cash platinum gained 0.2 percent to $1,608.25 an ounce. Palladium was little changed at $777.70 an ounce. To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net

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