Gold climbs from lowest since 2010 as Goldman sees losses

Written by PTI | London | Updated: Dec 21 2013, 03:02am hrs
Gold today rose from its lowest close in more than three years to pare a weekly loss that was spurred by the US Federal Reserve's decision to begin tapering stimulus.

Goldman Sachs Group said that bullion's decline isn't over as it heads for the biggest annual drop since 1981.

Gold rose 0.6 per cent to USD 1,195.46 an ounce after falling 2.5 per cent yesterday. Silver lost 1.3 per cent to USD 19 an ounce, the lowest price since December 4, before trading 0.3 per cent higher at USD 19.30.

Gold is heading for the first annual decline since 2000 after investors lost their faith in precious metals as a store of value.

The Fed said it will cut monthly asset purchases, known as quantitative easing, to USD 75 billion from USD 85 billion. US equities jumped to a record. Exchange-traded products backed by bullion lost about USD 73 billion in value this year, and mining companies wrote down at least USD 26 billion.