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Gold declines in Asian trading for third day on US dollar rebound
[SINGAPORE] Gold dropped for a third day as the US dollar rebounded and investors waited for the Bank of Japan's policy review.
Bullion for immediate delivery traded at $1,235 an ounce by 8:32 am in Singapore, from US$1,235.27 on Monday when it lost 1.1 per cent, according to Bloomberg generic pricing. The metal is up 16 per cent in 2016.
Gold's gain this year has been pared as risk appetite returns to financial markets and the Bloomberg Dollar Index advanced from the weakest since October, diminishing the appeal of the yellow metal as a store of value.
The BOJ's review, to be followed by a policy decision from the Federal Reserve on Wednesday, comes after Japan's surprise shift into negative rates in January, and last week's unprecedented stimulus move from the European Central Bank.