Bullion slid to $1,186 an ounce on Dec. 19, near this year’s low set in June, before rebounding to a one-week high of $1,218.90 on Dec. 27. Global equities traded near the highest since 2007 before reports this week that may show gains in U.S. housing and manufacturing.

“We’re seeing improving economies with little or no inflation,” Frank McGhee, the head dealer at Integrated Brokerage Services in Chicago, said in a telephone interview. “The fear has been stripped out of the market, and absent inflation, I think we’ll see gold continue to grind lower into next year.”