Gold today recovered from nearly five-month low after the biggest one-day drop since October, as investors assessed whether the US economy is strong enough to warrant a reduction in monetary stimulus.
Gold gained 0.2 per cent to USD 1,221.84 an ounce after tumbling 2.7 per cent yesterday, the most since October 1. Silver also rose 0.4 per cent to 19.22 dollar an ounce, after falling 4.2 per cent yesterday, the most since Sept. 20. Gold lost 27 per cent this year, touching a 34-month low of 1,180.50 dollar in June, on speculation the Federal Reserve will start paring its quantitative easing program that drove a 12th annual advance in 2012.
Data yesterday showed that while US manufacturing unexpectedly accelerated in November at the fastest pace in more than two years, retail spending fell on the weekend after Thanksgiving for the first time since 2009.