NEW YORK, Nov 13 — Gold held losses as the Federal Reserve prepares to raise interest rates next year while other central banks boost stimulus, strengthening the dollar. Assets in the SPDR Gold Trust posted the longest slump in 16 months.

Bullion for immediate delivery fell as much as 0.5 per cent to US$1,156.72 (RM3858) an ounce, and traded at US$1,163.60 by 12.26pm in Singapore, according to Bloomberg generic pricing. Holdings in the SPDR, the biggest exchange-traded product backed by the metal, fell to a six-year low yesterday, contracting for a seventh day in the longest run of declines since June 2013.

Gold dropped last week to a four-year low of US$1,132.16 and is heading for the first consecutive annual retreat since 2000 as a slump in oil prices and the end of bond buying by the Fed cut demand for an inflation hedge. The Bloomberg Dollar Spot Index is trading near a five-year high as the first US rate rise since 2006 is probable next year, while central banks in Europe and Japan have taken more measures to support growth.

“The outlook for significant differences in monetary policy between the US and economies outside the US will continue to drive direction for precious metals,” Sun Yonggang, an analyst at Everbright Futures Co., wrote in a note today. “We remain cautious on gold.”

Gold for December delivery added 0.2 per cent to US$1,161.80 an ounce on the Comex in New York, after most-active prices slid on Nov. 7 to US$1,130.40, the lowest since April 2010.

Silver for immediate delivery declined 0.1 per cent to US$15.6728 an ounce, falling for a second day. Spot platinum was little changed at US$1,202.50 an ounce, while palladium slid 0.1 per cent to US$774.25 an ounce. — Bloomberg