Gold Falls to 10-Week Low as Economy Erodes Haven Demand

Gold futures fell to a 10-week low as signs of an improving U.S. economy crimped haven demand.

Manufacturing in the region covered by the Federal Reserve Bank of Richmond in Virginia expanded in April, reinforcing the U.S. central bank’s view that the economy is recovering and stimulus cuts are warranted. Gold has dropped 8 percent from a six-month high on March 17, partly on concern that the Fed may raise interest rates in 2015 after ending debt purchases this year. Equities headed for the longest rally since September.