By Kim Kyoungwha Dec. 29 (Bloomberg) -- Gold declined for the first time in five days after 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 U.S. Dollar Index, a six-currency gauge of the greenback’s value, has risen 3.5 percent this month. “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 0.3 percent to $1,104.20 an ounce at 5:02 p.m. in Seoul. Gold for February delivery in New York fell 0.3 percent to $1,104.80 an ounce. Bullion has risen 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 has fallen 6.3 percent in December as the Dollar Index gained. 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. 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 added 0.1 percent to $1,483 an ounce, silver slid 0.5 percent to $17.43 an ounce and palladium was down 0.4 percent at $388.50 an ounce. To contact the reporter on this story: Kyoungwha Kim in Singapore at kkim19@bloomberg.net

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