Speculation that the Federal Reserve may decrease its economic stimulus as early as next week didn’t seem to be doing gold any favours; however, the safe-heaven’s decline halted after just two days as the five-month low prices may be luring investors back towards it.

Bullion to be delivered immediately increased as much as 0.4 percent in Singapore today, while yesterday prices had fallen 2.1 percent, the most since 2nd December. When data last week came in positive for U.S. payrolls in November, gold touched $1,210.61 on 6th December, the lowest since 5th July.

The precious metal is set for its first annual lost in 13 years with a decline of 27 percent this year as investors anticipate Fed cuts on improving U.S. economy. The FOMC meeting is scheduled for next week, 17-18 December, and 34 percent of the economist that participated in a Bloomberg survey expect the cuts to begin next month. On a poll conducted on the 8th November, only 17 percent thought so.

Gold for February delivery increased 0.3 percent after its greatest fall in 10 weeks yesterday. The volume of trading remained at similar levels to the 100-day average