Gold swings between gains and drops before US economic data

LONDON: Gold today swung between gains and declines before US reports that may show the economic outlook is improving and as the dollar weakened, boosting demand for alternative assets.

Gold rose 0.1 per cent to 1,681.55 dollar an ounce. It gained and lost 0.2 per cent earlier. Silver was little changed at 31.47 dollar an ounce.

Assets in exchange-traded products expanded to an all-time high of 19,114.93 tons.

The US Dollar Index dropped 0.2 per cent as the euro, up 1.1 per cent this year, the most in four days against the greenback.

Data from the US may show housing starts rebounded in December at the fastest pace since July 2008, while building permits reached a four-year high and initial jobless claims declined.

The metal reached 1,685.25 dollar on January 15, the most expensive since January 3, as US lawmakers wrangled over increasing the 16.4 trillion dollar debt ceiling.

Since 1960, Congress has raised or revised the debt limit 79 times, including 49 times under Republican presidents, according to the Treasury Department.

Federal Reserve officials are voicing concern that record-low interest rates are overheating markets, which could heighten risks when the Fed's bond-buying program stops.