March 27 (Bloomberg) -- Gold declined from a two-week high as the dollar’s rebound eroded demand for the metal as an alternative investment.
The greenback rose from a three-week low against a basket of major currencies, as optimistic reports on consumer confidence and housing weakened the case for additional stimulus by the Federal Reserve. Yesterday, gold jumped the most in four weeks after Fed Chairman Ben S. Bernanke said that accommodative monetary policy was needed to bolster the labor market.
“The dollar’s strength is keeping gold quiet,” Dennis Cajigas, a senior market strategist at Zaner Group in Chicago, said in a telephone interview. “We are seeing some profit-taking.”
Gold futures for June delivery fell 50 cents to settle at $1,687.70 an ounce at 1:42 p.m. on the Comex in New York. Earlier, the price reached $1,699.60, the highest for a most-active contract since March 13.
The precious metal has gained 7.7 percent this year. Holdings in exchange-traded products backed by gold jumped 5 metric tons to 2,394.6 tons yesterday. The amount rose to a record on March 13.
Silver futures for May delivery slid 0.4 percent to $32.616 an ounce. The metal has advanced 17 percent this year.
On the New York Mercantile Exchange, palladium futures for June delivery slumped 0.9 percent to $663 an ounce. Platinum futures for July delivery advanced 0.7 percent to $1,662.10 an ounce, the third straight gain.
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