Gold declined the most in more than two weeks in New York on speculation the Federal Reserve will tighten monetary policy, curbing demand for the metal as an alternative investment.
The dollar strengthened against six major currencies as a report showed U.S. employers added more jobs than forecast in March. The improving economy encouraged Fed policy makers last month to signal they were unlikely to extend bond purchases beyond June. Gold futures, which reached a record $1,448.60 U.S. an ounce on March 24, typically move inversely to the greenback.
Gold futures for June delivery dropped $16, or 1.1%, to $1,423.90 U.S. an ounce late Friday morning on the Comex in New York, heading for the biggest fall since March 15. Prices gained 1.3% this year through March and climbed the past 10 quarters, the best run of gains since at least 1975. The metal for immediate delivery in London was 0.7% lower at $1,422.72 U.S.
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