Gold trimmed a second weekly advance as declining oil prices and prospects for higher U.S. interest rates outweighed signs of rising demand in China. Bullion for immediate delivery lost as much as 0.8 percent today to $1,217.50 an ounce and traded at $1,219.96 by 3:45 p.m. in Singapore, paring this week’s increase to 2.3 percent, according to Bloomberg generic pricing. The metal climbed to $1,238.32 on Dec. 9, the highest since Oct. 23. While volumes for the benchmark spot gold contract climbed yesterday to a three-week high inShanghai, reports this week showed gains in consumer prices trailed economist estimates and factory-gate deflation deepened in China. Federal Reserve policy makers will meet next week as U.S. data show an improving job market and weak inflation. Asian stocks snapped a three-day decline today and the MSCI All-Country World Index of equities was set for the first increase in five days. “The recent strength in gold was driven by some reallocation of profits away from equity markets,” Mark Keenan, Singapore-based head of commodities research at Societe Generale SA, said by phone. “We view the price in a firm downtrend, which is broadly driven by a framework of a recovering U.S. economy and rising rates.” The Bloomberg Dollar Spot Index was little changed after rising yesterday for the first time in four days. Fed officials gather Dec. 16-17 to debate the timing of the first interest-rate increase since 2006 after ending a bond-buying program. bloomberg