Gold prices fell to the lowest level in 18 weeks as investors ditched the safe-haven metal following decreasing tensions in Eastern Europe and solid US economic numbers.
Gold for June delivery, the most actively traded contract, closed down 0.5 per cent, or $US6.20, at $US1,259.30 a troy ounce on the Comex division of the New York Mercantile Exchange, the lowest level since February 7.
The move follows a nearly two per cent drop on Tuesday.
Prices for the precious metal spent most of May hovering around $US1,300 an ounce, as investors weighed fallout from the political conflict between Russia and Ukraine against an improving US economic picture.
The scales tipped in the last few days, after a weekend presidential election in Ukraine went off without a hitch and Russia indicated a willingness to work with the new government.
As the conflict between the two countries eases, investors see less of a need to hold gold, which some use as a haven in times of political or economic uncertainty.
In other markets, palladium prices rallied 1.1 per cent to close at a 33-month high of $US839.85 a troy ounce as concerns persisted that world supplies are tightening amid a continuing miners’ strike in South Africa, the world’s second-largest exporter of the metal.
The gains came even as South Africa’s new mining minister vowed to end the 18-week strike, which has brought platinum output to a near halt and weakened the country’s economic growth.
Platinum for July delivery ended flat at $US1,462.70 an ounce, after touching a two-week low earlier in the day.
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