Gold Posts Longest Losing Streak Since May as Dollar Advances

Aug. 5 (Bloomberg) -- Gold futures fell for the fifth straight session, capping the longest slump since May, as a stronger dollar crimped demand for the precious metal as an alternative investment. The dollar rose as much as 0.4 percent to $1.3233 against the euro. Gold has fallen 22 percent this year as the greenback gained 4.2 percent against a gauge of 10 major trading partners. The metal has also retreated as some investors lost faith in bullion as a store of value amid concern that the Federal Reserve may slow the pace of its stimulus. Gold futures for delivery in December fell 0.6 percent to settle at $1,302.40 an ounce at 1:50 p.m. on the Comex in New York. The Fed said last week it would maintain its $85 billion monthly bond-buying program while warning that persistently low inflation could hamper the economic expansion. Fifty percent of the 54 economists in a Bloomberg survey last month expected the Fed to decide to pare bond purchases in September. Silver futures for September delivery dropped 1 percent to $19.719 an ounce in New York. On the New York Mercantile Exchange, platinum futures for October delivery slipped 0.2 percent to $1,448.10 an ounce. Palladium futures for September delivery rose 0.8 percent to $735.20 an ounce.