Gold prices suffered the biggest decline in a week along with the strengthening U.S. dollar triggered a sell-off investors for precious metals due to unrest in the Middle East and northern Africa.
The dollar rose against a basket of six major currencies and oil fell for a third day in a row. Gold futures contract reached its highest level at U.S. $ 1,445.70 per ounce on March 7, due to the escalation of unrest in Libya.
"The weakening crude oil prices and a strengthening U.S. dollar push gold lower," said Frank Lesh, trader at FuturePath Trading LLC in Chicago.
Gold for April delivery fell U.S. $ 17.10 or 1.2%, ending at U.S. $ 1412.50 at 1:51 pm at New York's Comex, the biggest since March 3. Last year, the precious metal is up 27%.
"Action took profits from market participants and investors came after an increase last few days. Losses may be limited because of the attractiveness of gold is still strong," said Chae Un Soo, dealers KEB Futures Co., Seoul.
Silver for May delivery fell 2.7% to U.S. $ 35.066 an ounce on the Comex
