1st LD Writethru: Gold falls on stronger U.S. dollar, equities

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Monday as strength of U.S. dollar and gains in equities weighed on the precious metal.

The most active gold contract for April delivery fell 10.1 U.S. dollars, or 0.81 percent, to settle at 1,244.20 dollars per ounce.

Gold was put under pressure as the U.S. Dow Jones Industrial Average rose by 28 points, or 0.16 percent, as of 1815 GMT.

Analysts noted that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains.

The U.S. Dollar Index, a measure of the greenback against a basket of major currencies, rose on Monday. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.

Dennis Lockhart, Atlanta Fed President, said Monday that steady U.S. economic growth could justify increasing short-term interest rates as soon as the April meeting.

Also on Monday, San Francisco Fed President John Williams said he would support an interest-rate rise in April if the U.S. economy continues to perform well.

However, the precious metal was prevented from falling further as the U.S.-based National Association of Realtors said in a report that existing home sales decreased by 7.1 percent during February to a 5.08 million annualized rate.

Analysts noted that this report was much worse than expected and that all regions showed weakness during the month.

Silver for May delivery added 3.6 cents, or 0.23 percent, to close at 15.847 dollars per ounce. Platinum for April delivery rose 11.3 dollars, or 1.16 percent, to close at 981.80 dollars per ounce. Endit