Gold swings between gains and drops on stronger dollar

Gold today swung between gains and losses, after its worst run of weekly losses since 2004, as a stronger dollar curbed demand for the metal as an alternative investment.

Gold fell by 0.1 percent to 1,653.32 dollar an ounce. It gained 0.4 percent and slid 0.2 percent today. Silver also fell 0.4 percent to 30.09 dollar an ounce. Bullion slid for a sixth straight week through January 4 after minutes from the US Federal Reserve showed that board members said they will probably end 85 billion dollar in monthly bond purchases, the third round of so-called quantitative easing, some time in 2013.

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The US Dollar Index, a gauge against six currencies, rose for a fourth day and reached a six-week high on January 4.

Holdings in gold-backed exchange-traded products gained 2.4 metric tons to 2,623.2 tons, after dropping the most since May the previous day.

Assets reached a record 2,632.5 tons on December 20 and prices gained for a 12th consecutive year in 2012 as central banks from the US to China pledged more steps to spur economic growth.