VINACHEM

Gold futures fell from a six-monthhigh as signs of optimism on the U.S economy eroded demand forthe precious metal as a store of value.

U.S. retail sales rose in February for the first time inthree months, and jobless claims unexpectedly fell last week tothe lowest since November, government reports showed today.Through yesterday, gold jumped 14 percent this year as signs offaltering global economic growth and escalating tension between Russia and Ukraine boosted demand for a haven.

“The market is reacting to today’s U.S. data,” AlfonsoEsparza, senior currency analyst in Toronto at Oanda Corp., saidin a telephone interview. “The Ukraine situation is still veryvolatile, so any news out of there could push gold higher”

Gold futures for April delivery fell 0.2 percent to$1,368.20 an ounce at 10:48 a.m. on the Comex in New York.Earlier, the price reached $1,375.70, the highest for a most-active contract since Sept. 10. Trading was 15 percent above theaverage for the past 100 days for this time, data compiled byBloomberg showed.

Earlier, gold rose as much as 0.4 percent. The U.S. and Germany stepped up pressure on Russia to back down from plans toannex Crimea from Ukraine after the region holds a referendum inthree days. China’s retail sales, industrial output andinvestment last month trailed estimates, data showed today.

‘Correction Potential’

“Amid concerns about the Chinese economy and thegeopolitical tensions between Russia and Ukraine, gold isclearly still in demand as a safe haven,” analysts atCommerzbank AG wrote said in a report. “The price increase hasalso been driven by speculation, giving rise to furthercorrection potential.”

Yesterday, the metal’s 14-day relative strength indexyesterday approached 70, a chart signal that prices may bepoised to decline. Global holdings in exchange-traded productsback by gold fell for the first time in a week, data compiled byBloomberg show.

Last year, gold slumped 28 percent, the most since 1981,amid a U.S. equity rally to a record, muted inflation andspeculation that the Federal Reserve would taper monetarystimulus.

Silver futures for May delivery dropped 0.5 percent to$21.245 an ounce on the Comex.

On the New York Mercantile Exchange, platinum futures forApril delivery rose 0.4 percent to $1,482 an ounce.

Palladium futures for June delivery declined 0.2 percent to$775.80 an ounce. Russia is the world’s biggest source of themetal.

European Union foreign ministers are prepared to draft aseries of punitive measures against Russia including assetfreezes and visa curbs.