Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold dropped 0.8% to close just over $1,244 as a stronger dollar reduced demand for alternative assets.

The dollar gained 0.3% against major rivals after prominent Fed officials signaled the possibility of higher interest rates as soon as April. John Williams of the San Francisco Fed said a rate hike in April or June would be appropriate if the economy continues at its current pace. Separately, Atlanta Fed President Dennis Lockhart echoed this view, noting adequate momentum in the economy "to justify a further step at one of the coming meetings."

The likelihood of higher rates typically boosts the dollar by attracting foreign exchange investment in search of higher yield. A rising dollar weighs on gold and other commodities by making them more expensive overseas.

The market shook off new that U.S. existing home sales fell more than 7% last month to the lowest level since November, suggesting a loss of momentum in the crucial housing sector.

The other precious metals finished higher, with silver picking up 0.2% while platinum and palladium gained 1.2% and 2.2%, respectively.

At the Comex close: April gold dropped $10.10 to $1,244.20; May silver added nearly 4 cents, to $15.85April platinum gained $11.30 to $981.80; and June palladium rose $12.90 to $602.95 an ounce.