Gold futures fell the most in a week as rallies by equities and the dollar reduced demand for precious metals as alternative investments.
U.S. and European shares rose after China’s central bank cut lenders’ reserve requirements by the most since the global financial crisis. The dollar rose for the first time in a week against a basket of 10 currencies. Gold fell 2.5 percent in March as the greenback climbed for the ninth straight month. Silver, platinum and palladium slumped Monday.
Gold futures for June delivery fell 0.8 percent to settle at $1,193.70 an ounce at 1:48 p.m. on the Comex in New York, the biggest drop for a most-active contract since April 9. The metal declined for three straight quarters amid concern that the Federal Reserve will raise interest rates.
U.S. monetary policy will remain accommodative once the central bank lifts interest rates, likely in 2015, New York Federal Reserve President William C. Dudley said in a speech Monday at the Bloomberg Americas Monetary Summit.
Silver futures for May delivery fell 2.1 percent to $15.889 an ounce on the Comex. Earlier, the price touched $15.82, the lowest since March 19.
On the New York Mercantile Exchange, platinum futures for July delivery dropped 1.6 percent to $1,148.80 an ounce, the biggest decline since March 30.
Palladium futures for June delivery fell 1.3 percent to $772.40 an ounce, the largest slump since April 8.
Source : Bloomberg