Gold Declines on Rally to Record Price, Signs of Improving Economy in U.S.

Gold fell for a third day in New York, as some investors sold the metal after its march to a record and signs the U.S. economy is improving. Silver, platinum and palladium also fell.
The U.S. economy grew at a rate of 3.1 percent annually in the fourth quarter, revised up from an estimate of 2.8 percent issued last month, data showed on March 25. A Federal Reserve official said the central bank may reduce monetary stimulus. Gold futures reached a record $ 1448.60 an ounce on March 24 in fighting in Libya, the nuclear crisis and Japanese concerns over European debt increased demand for wealth protection.
"The U.S. numbers were not so terrible," said Afshin Nabavi, senior vice president of precious metals refinery MKS Finance SA in Geneva. "The market has had a major move and the higher we climbed, the more chances of a major correction."
Gold futures for June delivery fell $ 12.30, or 0.9 percent, to $ 1415.30 an ounce at 8:43 am love the Comex in New York. Prices have fallen 0.4 percent this quarter after winning the last nine quarters. The metal for immediate delivery in London was 1.1 percent, to $ 1,413.49.
Bullion declined to $ 1,420 an ounce in the morning "fix" in London, used by some mining companies to sell production, from $ 1,436 in the afternoon on March 25.
Consumer spending in the U.S. increased more than expected in February, incomes rose, the Commerce Department figures showed today in Washington. Policy makers should review whether the plans to reduce purchase $ 600 billion in Treasury bills, due to strong economic data, St. Louis Fed President James Bullard said on March 26.
Rebels Advance
The Atlantic Treaty Organization North said yesterday that it has taken command of all military operations to ensure safety of civilians against forces loyal Libyan leader Muammar Gaddafi. Rebel forces advanced westward, with the support of NATO bombing aimed at Sirte, the hometown of the country's leader.
The levels of radiation that can be fatal were detected outside the reactor building crippled central Japan Fukushima Dai-Ichi for the first time. Prevention of most of the contaminated water to seep into the soil or air is key to efforts to contain the spread of radiation beyond the installation, damaged after the March 11 earthquake and tsunami.
"The strong U.S. economic data provided some investors with a good excuse to take profits after gold hit a record," said Hwang Il Doo, a senior trader at Korea Bank Futures Co. in Seoul . "Ingots can soon resume the rally, as there are many uncertainties persist in all the market. The problems of the euro zone debt and instability in the Middle East, and the consequences of the earthquake in Japan"
Silver Slide
Silver for May delivery in New York fell 1.2 percent to $ 36. 60 ounce. $ 38.18 reached on March 24, the highest since February 1980, the future of the year reached a record $ 50.35. Prices are up 18 percent this year, heading for the ninth consecutive quarterly advance, the best streak of gains since at least 1975.
Silver held in the traded goods rose 194.68 metric tons to 15,382 tons on 25 March, the highest since at least February 2010, according to data compiled by Bloomberg from four suppliers of entertainment. An ounce of gold purchased only 37.94 ounces of silver in London last week, at least since 1983, according to data compiled by Bloomberg.
The U.S. Mint said customers can order the 2011 United States Mint America the Beautiful Quarters Silver Proof September 1st April. The game's currency date release was delayed from March 29 due to higher silver prices, the Mint said in a statement on its website on 25 March.
Palladium for June delivery fell 1.4 percent to $ 740.25 an ounce, bringing its quarterly loss of 7.8 percent. Platinum for July delivery declined 1 percent to $ 1731.40 an ounce. Prices have fallen 2.6 percent this quarter.

(Source: http://www.bloomberg.com/news/2011-03-28/gold-declines-as-improving-u-s-economy-reduces-demand-investment-appeal.html)