Gold drops on progress in US data

Gold retreated for the third session to continue its fall after touching all-time high of $1447.51 an ounce on March 24 as the improvement in US data raised speculations the Fed will not extend its second-round stimulus.

The shiny metal rose on expected spending by the world's largest economy through the announced QE2 which triggered demand on gold as an inflation hedge.

The better-than-estimated growth and job data increased the likelihood of seeing a halt in the stimulus program.

Last week, US annualized 4q GDP beat forecasts of 2.8% as it reached 3.1% and unemployment dropped to 8.9% in February.

Later in the day, eyes will be personal spending and pending home sales.

Gold prices fell today to trade at $1417.96 after recording a high of $1428.65 and a low of $1417.28.

The previous session, gold shed $0.60 or 0.04% after closing at $1428.55, while gold price was setin London at $1436.00 per ounce inclining from $1434.00 during the AM fixing.

Gold rose to a new high last week on the back of the unrest in the Middle East, Japanese radiation leaks, and European debt problems.

Still, the three are continuing which may give support to gold once again to rebound in the case of any further development of any of aforesaid factors.

On the other hand, the dollar rebounded today to trade at 76.34 compared with the day's opening of 76.29, according to the dollar index gauge.

Oil prices halted its rally as it slipped to a low of $104.53 a barrel on Monday after closing at $105.60 on Friday.

Among other precious metals, platinum plummeted to $1730.50 from the day's opening of $1737.00, palladium plunged to $737.50 from $743.40 and silver edged down to $36.65, from $37.17, as of 07:30 GMT.