Gold falls as investors sell after advance on stimulus outlook

LONDON: Gold today declined for the first time in four days on speculation that some investors may sell the metal after prices climbed following signs the US Federal Reserve will maintain stimulus.

Gold fell by 0.5 per cent to USD 1,284.22 and silver by 0.7 per cent to USD 20.66 an ounce.

Janet Yellen, the nominee to replace Ben S. Bernanke as Fed chairman, signaled that she would continue the record stimulus program until the US economy is stronger.

Gold is set for the first annual drop in 13 years as some investors lost faith in the metal as a store of value and on speculation a strengthening economy will spur the Fed to slow debt purchases.

Holdings in gold-backed exchange-traded products fell 1.5 tonnes to 1,869.5 tonnes on November 15, the lowest since April 2010. Global equities rallied 18 per cent this year and reached the highest since January 2008 today.