By Kim Kyoungwha Jan. 4 (Bloomberg) -- Gold fluctuated between gains and losses as investors weighed the impact of a stronger dollar, which typically hurts prices, while some buyers boosted holdings after the biggest monthly fall since October 2008. The Dollar Index advanced today ahead of reports this week that are forecast to show that U.S. manufacturing expanded, factory bookings rose and employment losses almost ceased. Bullion, which touched a record on Dec. 3, slumped 7 percent last month as the U.S. currency strengthened. “We may see some rebound in gold,” said Ellison Chu, a manager at Standard Bank Asia Ltd. in Hong Kong. “The market was so thin last month and price declines were exaggerated. I still believe gold will continue to climb higher.” Gold for immediate delivery swung between a loss of 0.4 percent to $1,093.42 an ounce, and a gain of 0.3 percent. The metal, which touched an all-time high of $1,226.56 last month, traded little changed at $1,097.72 at 11:27 a.m. in Singapore. Gold for February delivery in New York rose 0.3 percent. The Dollar Index, which tracks the U.S. currency against the six major counterparts, advanced as much as 0.4 percent today, taking gains to 5.4 percent since touching a 15-month low on Nov. 26. “The gold market is being swayed by movements of the dollar, which has chalked up further strength,” Han Sung Min, a trader with KEB Futures Co., said in Seoul after the precious metal’s earlier gain. “The prospect of a rate hike in the U.S. is deterring gold investors.” Interest Rates The Federal Reserve has kept benchmark interest rates close to zero since December 2008 to spur growth after the worst financial crisis since World War II. Investors poured about $60 billion into commodities through index-tracking and exchange- traded funds and medium-term notes last year, and should at least match that in 2010, according to a Barclays Capital survey. Gold gained 24 percent in 2009 as investors sought to protect their wealth against currency debasement and a potential increase in inflation. That was the ninth straight annual advance, and the biggest yearly gain since 2007. Among other precious metals for immediate delivery, platinum gained 1.3 percent to $1,481.50 an ounce; silver added 0.2 percent to $16.925 an ounce; and palladium climbed 0.4 percent to $409.25 an ounce. To contact the reporter on this story: Kyoungwha Kim in Singapore at kkim19@bloomberg.net

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