Gold futures fell Wednesday, continuing to retreat from the $1,600 level as a climb in the U.S. dollar highlighted an appetite for risk among investors. Gold for June delivery in electronic trade fell $10.30, or 0.7%, to $1,565.70 an ounce. Gold fell sharply during North American trade Tuesday, giving up $25 to settle at $1,575.90 an ounce, the lowest settlement for a most-active contract since March 7, according to FactSet data. ‘ The precious metal was hurt by a rise in the greenback against the euro following disappointing data from Europe, including contraction in the euro-zone manufacturing sector in March. The dollar also rose against the yen ahead of the Bank of Japan's monetary policy meeting. Strength in the dollar cuts into prices of dollar-denominated commodities such as gold as it makes them more expensive for holders of other currencies. The dollar on Wednesday continued to rise against the yen as the Bank of Japan started its two-day monetary policy meeting. Investors on Tuesday were also lured away from gold as U.S. equities rallied, fueled in part by a rise in U.S. factory orders in February and upbeat auto sales figures for March. Both the Dow Jones Industrial Average and the S&P 500 Index finished at record highs. Analysts at Société Générale on Tuesday reiterated their bearish stance on gold prices. Their base-case 2013 forecast is for $1,500 an ounce on average, with a drop to $1,375 an ounce by the end of the year. Remaining under pressure Wednesday, silver futures for May lost 31 cents, or 1.1%, to $26.94 an ounce. They fell to $27.25 an ounce on Tuesday, the lowest level for a most-active contract since early August. May copper futures slipped 0.2% to $3.37 a pound and July platinum fell $9.9, or 0.6%, to $1,564.30 an ounce. June palladium shed $5.40, or 0.7%, to $764.05 an ounce. Marketwatch
