Gold, silver rise for the first time in four days

LONDON: Gold and silver today rose for the first time in four days, rallying from the lowest since August 2010, as investors weighed the Federal Reserve's stimulus plans and bullion holdings in the top exchange-traded product held steady.

The gold rose 0.9 per cent to $ 1,237.60 an ounce, after plunging to $ 1,222 yesterday, the lowest since August 24, 2010.

Silver also gained 1.1 per cent to $ 18.75 an ounce. Silver, the worst-performer on the Standard and Poor's GSCI gauge of commodities this year, plunged to $ 18.45 yesterday, also the lowest level since August 2010, and has retreated 38 per cent this year.

This quarter, it's declined 34 per cent, heading for the biggest quarterly loss since 1980.

Gold has lost 23 per cent since the start of April, heading for a record quarterly loss, after Fed Chairman Ben Bernanke said the central bank may slow asset purchases if the economy continues to improve.

The US dollar weakened for the first time in seven days against a six-currency basket after Federal Reserve Bank of Richmond President Jeffrey Lacker said yesterday the Fed isn't close to reducing its bond holdings. Commodities and stocks also gained.