By Glenys Sim Jan. 21 (Bloomberg) -- Gold pared gains as the dollar rebounded after China’s economy in the fourth quarter expanded at the fastest pace since 2007. China’s gross domestic product climbed 10.7 percent from the same period a year ago, more than the median forecast of 10.5 percent in a Bloomberg News survey, adding to speculation the world’s third-largest economy will limit lending and raise borrowing costs to curb inflation and accelerating asset prices. “Gold has been driven by dollar moves recently and hasn’t been able to play to its safe haven status as investors shift their attention onto the platinum group metals,” said Steven Zhu, head trader at Shanghai Tonglian Futures Co. “It had a good run last year and needs to consolidate those gains.” Immediate-delivery gold traded little changed at $1,111.49 an ounce at 10:25 a.m. in Singapore, after advancing as much as 0.5 percent. February-delivery bullion in New York was barely changed at $1,112.20 an ounce. Holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by the metal, were unchanged yesterday after three straight days of declines. Assets stood at 1,111.92 metric tons, according to the company’s Web site. Stocks in the U.S. and Europe tumbled yesterday and the dollar rallied on concern China, driver of the global recovery, may curb lending and rein in stimulus measures. China will restrict credit growth to 7.5 trillion yuan ($1.1 trillion) this year, the China Banking Regulatory Commission said. The dollar rose for a third day against a six-currency basket today. Gold may “come under pressure in the second quarter in the face of a stronger U.S. dollar and the prospect of rising interest rates,” Royal Bank of Scotland Group Plc analysts led by Nick Moore wrote in an e-mail. “We do not expect to see significant further upside to the gold price until 2012.” Among other precious metals for immediate delivery, silver and platinum were little changed at $17.90 an ounce and $1,624 an ounce. Palladium climbed as much as 1.2 percent to $474.38 an ounce, the highest price since June 23, 2008. To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net

Source