Gold Fell After 5 Days of Surging

Gold prices fell for the first day in five as hedge funds and other large speculators sold bullion to lock in a 17 percent gain for 2005.

The precious metal is heading for its fifth annual increase, and reached a 24-year high of $541 an ounce on Dec. 12 as investors diversified from stocks, bonds and currencies amid concern over inflation. It has outperformed a 3.5 percent gain in the Standard & Poor's 500 Index this year.

Gold for immediate delivery fell as much as $4.79, or 0.9 percent, to $512.11 an ounce, and traded at $514.84 an ounce at 3:20 p.m. Singapore time.