By Kim Kyoungwha Dec. 29 (Bloomberg) -- Gold declined for the first time in five days as a rebound in the dollar damped demand for the precious metal as an alternative investment. The U.S. currency may strengthen against the euro for a second day before a report that economists forecast will show U.S. consumer confidence grew this month, adding to speculation the Federal Reserve may end emergency stimulus measures. Gold typically moves inversely to the dollar. “The gold market is merely taking its cue from the currency market,” said Steve Chun, a trader with Hyundai Futures Co. in Seoul. “I’m not inclined to read too much into price actions given that trading is in a slow holiday mood.” Gold for immediate delivery slipped 0.4 percent to $1,102.70 an ounce at 10:50 a.m. in Singapore. Gold for February delivery in New York fell 0.5 percent to $1,102.80 an ounce. Bullion has risen about 25 percent this year as investors sought protection against the prospect of currency debasement and inflation. Signs of improving U.S. growth sparked a rally in the dollar this month after the currency fell to a 15-month low in November. Gold slid 6.4 percent in December as the Dollar Index, the six-currency basket, gained 3.7 percent. The New York-based Conference Board’s consumer confidence index probably rose to 53 this month from 49.5 in November, according to the median estimate of economists in a Bloomberg News survey. Futures trading in Chicago showed yesterday a 60 percent chance that the Fed will raise its target lending rate by at least a quarter percentage point by its June meeting, up from 46 percent a week ago. Best Forecaster Gold probably will extend its longest winning streak in at least six decades next year on concern that inflation will accelerate and the dollar weaken, according to this year’s most accurate forecaster. “As long as we see a zero interest-rate policy in the U.S. and the probability of continued big fiscal deficit, the dollar is going to be under pressure again,” said Philip Klapwijk, chairman of London-based research company GFMS Ltd. Klapwijk in January predicted gold would average $970 an ounce this year. The actual average through Dec. 28 was 0.2 percent higher. Among other precious metals, platinum for immediate delivery shed 0.6 percent to $1,471.50 an ounce, silver slid 0.8 percent to $17.375 an ounce and palladium was down 0.8 percent at $387 an ounce. To contact the reporter on this story: Kyoungwha Kim in Singapore at kkim19@bloomberg.net

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