VINACHEM

Gold gained for the first time inthree days in London as a weaker dollar increased demand for themetal as an alternative investment.

The Bloomberg U.S. Dollar Index, which tracks the greenbackagainst 10 currencies, fell as much as 0.2 percent. Data showedthis week that China’s net gold imports from Hong Kong reachedthe second-highest level on record in October. The nation’s golddemand surged this year after supply rose and prices fell amidinvestor sales from bullion-backed exchange-traded products,Macquarie Group Ltd. said in a report today.

“Gold is mostly supported by a weaker dollar,” said Andrey Krychenkov, an analyst at VTB Capital in London.“Trading is very thin and narrow because of the U.S. holiday.”

Bullion for immediate delivery rose 0.5 percent to settleat $1,244.13 an ounce, after falling as much as 0.3 percent.Prices are down 5.9 percent this month, set for the biggest dropsince June. Gold for February delivery added 0.5 percent to$1,244.50 an ounce in electronic trading on the Comex in New York. Futures trading volumes were 68 percent lower than theaverage for the past 100 days for this time of day, according todata compiled by Bloomberg.

U.S. markets are closed for the Thanksgiving holiday andtoday’s transactions will be booked with tomorrow’s trades forsettlement purposes.

“Physical demand for gold is still improving,” Walter de Wet, head of commodities research at Standard Bank Group Ltd.,wrote in a report today. “Volumes don’t seem big enough to stemthe slide in the gold price. Should demand reach levels seen inJune and July, it may start forcing short-covering in thefutures market.”

U.S. Economy

Prices dropped to $1,225.55 on Nov. 25, the lowest sinceJuly 8. They slid 0.4 percent yesterday after data showed thenumber of Americans claiming jobless benefits in the week endedNov. 23 declined to the fewest in two months and the ConferenceBoard’s index of U.S. leading indicators rose for a fourthstraight month in October. Separate reports also showed anunexpected advance in consumer sentiment, while orders fordurable goods dropped.

Economic confidence in the euro-area rose more thaneconomists forecast in November, while German unemploymentunexpectedly rose for a fourth month, reports showed today.Holdings in the SPDR Gold Trust, the biggest ETP backed bybullion, declined to 843.21 metric tons yesterday, the leastsince January 2009, and have contracted 38 percent this year.