Gold climbs from lowest close since ’10

Goldman Sachs Group Inc said that bullion’s decline isn’t over as it heads for the biggest annual drop since 1981.

The metal for delivery in February rose 0.1 per cent to $1,195 an ounce by 9:34am on Comex in New York, bringing the drop this week to 3.2 per cent. Futures fell 3.4 per cent on Thursday to $1,193.60, the lowest settlement since August 3, 2010.

Gold for immediate delivery rose 0.6 per cent to $1,195.46 an ounce after falling 2.5 per cent on Thursday.

Gold is heading for the first annual decline since 2000 after investors lost their faith in precious metals as a store value.