1st LD Writethru: Gold down on stronger U.S. equities

Gold futures on the COMEX division of the New York Mercantile Exchange fell Friday as U.S. equities rebounded sharply.

The most active gold contract for April delivery fell 13.4 U.S. dollars, or 1.05 percent, to settle at 1,259.40 dollars per ounce. For the week, gold futures declined 0.89 percent.

Energy prices increased on Friday, leading a rally in U.S. equities, putting extensive pressure on gold as the stronger U.S. equities dulled investor interest in the precious metal.

Analysts noted that the recent low prices of oil have depressed global equities markets and as a result have driven investors to gold as a safe haven, but now that the energy outlook is a little more stable, investors are beginning to regain confidence.

Gold was put under further pressure as a report released by the U.S. Department of Labor on Friday showed import prices falling by 0.3 percent during the month of February, and export prices falling by 0.4 percent. Analysts noted that both of these figures are better-than-expected and show very little contraction.

Traders are also waiting for the U.S. Federal Reserve's Federal Open Market Committee meeting next week for an indication on the timing of a potential rate hike.

Silver for May delivery rose 5.6 cents, or 0.36 percent, to close at 15.605 dollars per ounce. Platinum for April delivery fell 8 dollars, or 0.82 percent, to close at 969.70 dollars per ounce. Endit