Gold fell after the biggest advance in almost two weeks as SPDR Gold Trust holdings extended the longest streak of declines and other commodities dropped after China’s producer prices retreated more than forecast.

Holdings in the world’s largest exchange-traded fund fell 0.6 percent to 1,051.47 metric tons yesterday, the 22nd day of declines and the lowest since March 2009, according to figures on the company’s website. Bullion climbed 1.5 percent yesterday, the most since April 25, on signs of increased demand in India and China, the largest users. The Standard & Poor’s GSCI gauge of 24 raw materials slid as much as 0.4 percent today.

"Over the past few days, we’ve seen gold consolidating within a range, unable to break the downside around $1,430, but equally struggling to break the topside around $1,480,”said Saeed Amen, an analyst at Nomura International Plc in London. “There are two opposing forces, one being the continuing fall in gold ETF holdings, whilst demand from Asia has helped support the price.”

Gold for immediate delivery fell 0.2 percent to $1,470.56 an ounce by 10:30 a.m. in London. Futures for June delivery declined 0.3 percent to $1,469.40 on the Comex in New York.

Bullion has lost 12 percent this year, tumbling into a bear market last month. The Standard & Poor’s 500 Index rose to a record for a fifth day yesterday, while the Stoxx Europe 600 Index gained to the highest since June 2008. The Bank of England will keep its key rate at an all-time low of 0.5 percent today, according to a Bloomberg News survey. The European Central Bank cut the euro area’s benchmark rate to a record low on May 2.

"With low rates, the search for risk increases,” George Boubouras, Equity Trustees Ltd. chief investment officer, said on Bloomberg Television today. “It pushes you to risk assets in general.”

Silver for immediate delivery climbed 0.2 percent to $24.031 an ounce. Spot palladium was little changed at $694.61 an ounce, while platinum rose 0.1 percent to $1,505.10 an ounce.  (Bloomberg)