Gold futures fell Monday to end the longest rally in five weeks as a 15-year high in U.S. technology stocks cut demand for the precious metal as a haven.
The Nasdaq Composite Index climbed above 5,000 for the first time since 2000 on optimism that consumer spending will advance. Gold dropped 29 percent in the previous two years as the economy gained traction and global equities surged.
“The strength in the equity market is putting some pressure on gold,” Miguel Perez-Santalla, a sales and marketing manager at Heraeus Metals New York LLC, said in a telephone interview. “Gold is stuck in a range.”
On the Comex in New York, gold futures for April delivery dropped 0.4 percent to settle at $1,208.20 an ounce at 1:46 p.m. The price climbed in the previous three sessions, the longest rally since Jan. 20.
Earlier, the metal reached $1,223, the highest for a most- active contract since Feb. 17, after a cut in borrowing costs in China, the world’s second-largest consumer.
The “surprise” cut in interest rates “is expected to lift demand for physical gold,” Kitco Metals Inc. in Montreal said in a report.
The People’s Bank of China lowered the benchmark lending and deposit rates by a quarter percentage point on Saturday. Gold imports by India, the top consumer, may jump to 100 metric tons in March from about 25 tons in February, according to Rajesh Mehta, chairman of Rajesh Exports Ltd.
“China’s action is keeping gold supported,” Tai Wong, the director of commodity products trading at BMO Capital Markets Corp. in New York, said in a telephone interview. “Also, reports about higher imports by India are positive.”
Silver futures for May delivery fell 0.6 percent to $16.451 an ounce on the Comex. Aggregate trading was about 45 percent below the 100-day average for this time of day, according to data compiled by Bloomberg.
On the New York Mercantile Exchange, palladium futures for June delivery climbed 1.4 percent to $831.10 an ounce. The price gained for the sixth straight session, the longest rally since Oct. 29. The metal reached $833.50, the highest since Sept. 19.
Platinum futures for April delivery gained 0.4 percent to $1,189.90 an ounce.
In the spot market, the platinum-palladium ratio fell as much as 1.8 percent to 1.4283, the lowest since April 3, 2002, according to Bloomberg generic prices.