VINACHEM

Gold futures fell to a two-week lowon the optimistic outlook for the U.S economy, the world’slargest. Palladium headed for the biggest drop since June, andplatinum declined to the cheapest since March.

Orders for capital equipment such as computers andmachinery probably climbed in March by the most in four monthsin the U.S., an April 24 report may show. Gold has dropped 7.7percent from a six-month high on March 17, partly as investorsassessed prospects for further cuts in monetary stimulus by the Federal Reserve amid signs of gains in the labor market.

“There is not much interest in gold as the U.S. economicconditions improve,” George Gero, a vice president andprecious-metal strategist in New York at RBC Capital Markets,said in a telephone interview. “The physical buyers are alsowaiting on the sidelines to see if there will be furtherreduction in prices.”

Gold futures for June delivery fell 0.6 percent to$1,285.60 an ounce at 10:39 a.m. on the Comex in New York.Earlier, the price touched $1,281.80, the lowest for a most-active contract since April 2. Last week, the metal declined 1.9percent to $1,293.90, closing below the 200-day moving average.

The Fed in March reduced the monthly pace of bond purchasesby $10 billion to $55 billion, and signaled additional cuts in“further measured steps.” Gold jumped 70 percent from December2008 to June 2011 as the Fed bought debt and cut interest ratesto a record in a bid to boost the economy.

Trimmed Bets

Hedge funds reduced bullish bets on the metal for thefourth week, the longest slump this year.

In the week ended April 15, the net-long positioncontracted 8.5 percent to 90,137 futures and options, the lowestsince mid-February, government data showed on April 18. Bets onlower prices more than doubled in the past month.

On the New York Mercantile Exchange, palladium futures forJune delivery tumbled 3.9 percent to $775.95 an ounce, headingfor the biggest drop since June 26.

Platinum futures for July delivery fell 1.7 percent to$1,404.50 an ounce. Earlier, the price touched $1,399.80, thelowest since March 28, amid signs of progress in the labordispute in South Africa, the world’s biggest producer.

On April 18, Anglo American Platinum Ltd., Lonmin Plc andImpala Platinum Holdings Ltd. increased a pay offer for minersas the strike that has crippled mining entered a 13th week. TheAssociation of Mineworkers and Construction Union will meetproducers tomorrow to discuss the proposal.

Silver futures for May delivery declined 1.3 percent to$19.35 an ounce on the Comex.