Bloomberg (30/12) -- Gold fell for the first time in five days in London, set for its biggest annual loss in three decades, as an improving economy cut request for a protection of wealth. Silver retreated for the first time in more than a week.
Bullion slid to $1,187.13 an ounce on Dec. 20, close this years low set in June, before rebounding to a one-week high of $1,219.28 upon Dec. 27. Global equities traded close the highest level since 2007 before reports this week that may show improvements in U.S. housing and manufacturing.
Gold tumbled 28 percent this year, set for the worst annual plunge since 1981. Some investors lost faith in the metal as a store of value amid a rally in equities and an improving economy, which prompted the Federal Reserve to pare its $85 billion in monthly bond purchases. Holdings in exchange-traded products backed by bullion dropped 33 percent this year to the least since 2009, data compiled by Bloomberg show.
Gold for immediate delivery fell 0.8 percent to $1,203.51 by 9:09 a.m. in London. Bullion for February delivery dropped 0.9 percent to $1,202.90 upon the Comex in New York, where futures trading volume was 21 percent under the average for the past 100 days for this time of day, data compiled by Bloomberg showed.