Gold declines on Fed stimulus outlook before US retail sales

LONDON: Gold today declined amid concern that US retail sales will add reasons for the Federal Reserve to reduce stimulus.

Gold fell by 0.6 per cent to $1,244.94 an ounce and silver by 1.2 per cent to $20.05 an ounce.

US retail sales probably rose 0.6 per cent in November, economists said before the Commerce Department report due at 1:30 pm London time. Initial US jobless claims are also due.

Gold tumbled 25 per cent this year on speculation that the Fed will start scaling back its $85 billion in monthly bond buying as the economy improves. A US budget accord is also on track to win passage in Congress.