Jan. 5 (Bloomberg) -- Gold fluctuated as some investors sold the metal as prospects for a global recovery boosted the dollar, while others added holdings after a plunge in prices yesterday. Platinum, palladium and silver all declined. Bullion was little changed at $1,382 an ounce at 4:12 p.m. in Seoul after losing 0.2 percent and gaining 0.3 percent. The metal fell 2.4 percent yesterday, the most since Nov. 12. The February-delivery contract gained 0.2 percent to $1,381.50 on the Comex in New York after falling 3.1 percent yesterday. Gold slumped yesterday, together with base metals and oil, on speculation that the stronger dollar and a rally in equities will pare investment demand for commodities. The U.S. currency climbed for a third day today before a U.S. report that may show services industries grew at the fastest pace in 4 1/2 years. "The stronger dollar provided a good excuse to take profits," Hwang Il Doo, a senior trader at Korea Exchange Bank Futures Co. in Seoul, said today by phone. "It's a healthy correction," said Hwang. In 2010, gold posted a 10th annual gain, beating stocks and bonds, amid escalating U.S. and European debt. Blackstone Group LP's Byron Wien is among investors forecasting a further rally in 2011, saying earlier this week that gold may surge to $1,600 an ounce. The price touched a record $1,431.25 an ounce Dec. 7. 'Fell Too Much' "Gold fell too much yesterday," Chris Kwon, a trader at KTB Securities Co. in Seoul, said by phone. "Improving economic data appear to provide just some short-term weakness for gold. Overall, the uptrend remains intact as the U.S. economy is not in a full recovery yet and interest rates remain low." Improvements in the U.S. economy didn't meet the threshold for scaling back the Federal Reserve's plans to purchase $600 billion in bonds, the Fed said in minutes of its Dec. 14 policy meeting, which were released yesterday. Orders placed with U.S. factories unexpectedly rose in November and manufacturing in the U.S. expanded at the fastest pace in seven months in December. The Institute for Supply Management's non-manufacturing index, which covers about 90 percent of the U.S. economy and is due for release today, rose to 55.7 in December, the highest since May 2006, according to a Bloomberg survey of economists. "A string of upbeat economic news is bolstering optimism about the U.S. recovery," said Mike Jones, a currency strategist at Bank of New Zealand Ltd. "This is contributing to a firmer dollar," Jones said from Wellington. Precious metals typically move inversely to the U.S. currency. Cash platinum fell as much as 1.9 percent, the biggest loss since Nov. 16, and last traded 1.3 percent lower at $1,735.50 an ounce. Immediate-delivery palladium dropped as much as 1.8 percent to $764.50 an ounce, the lowest price since Dec. 27, after falling 2 percent yesterday. The metal declined for a third day, last trading at $767.60 an ounce. Silver for immediate delivery was 0.6 percent lower at $29.5850 an ounce after losing 3.1 percent yesterday, the most since Dec. 7. The metal climbed 83 percent last year. --With assistance from Ron Harui in Singapore. Editor: Jake Lloyd-Smith

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