Gold futures fall sharply as U.S. dollar strengthens

CHICAGO, April 23 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange fell more than one percent on Monday as the U.S. dollar strengthened and Treasury note yields climbed.

The most active gold contract for June delivery went down 14.30 U.S. dollars, or 1.07 percent, to settle at 1324.00 dollars per ounce.

The U.S. dollar index, a measure of the dollar against a basket of other major currencies, rose 0.51 percent to 90.88 as of 1646 GMT.

Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, priced in the dollar, becomes more expensive for investors using other currencies.

Expectations of higher interest rates tend to boost the dollar as yield-seeking investors are lured from safe-haven gold, said analysts.

More pressure on the precious metal came from the U.S. Treasury yield, which have neared three percent for the 10-year note.

The yield on the benchmark 10-year Treasury note reached 2.97 on Monday, its highest level since the end of 2013.

As for other precious metals, silver for May delivery fell 57.6 cents, or 3.36 percent, to settle at 16.587 dollars per ounce. Platinum for July lost 9.4 dollars, or 1.01 percent, to close at 922.40 dollars per ounce. Enditem