VINACHEM

Gold fell the most in a week on betsthat the Federal Reserve may refrain from more U.S. stimulusmeasures, while the dollar’s rebound eroded the appeal of themetal as an alternative investment.

Data from ADP Employer Services showed today that U.S.companies added more workers than forecast in June, which mayease concern that the labor market is deteriorating. The eurotumbled to a four-week low against the dollar after the European Central Bank cut its benchmark interest rate to a record.

“There is now less impetus for the policy makers to expandthe balance sheet,” Bart Melek, the Toronto-based head ofcommodity strategy at TD Securities Inc., said in a telephoneinterview. “The dollar’s strength is not helping matters.”

Gold futures for August delivery fell 0.8 percent to settleat $1,609.40 an ounce at 1:40 p.m. on the Comex in New York, thebiggest drop for a most-active contract since June 28.

In the second quarter, the metal slumped 4 percent as thedollar gained 3.3 percent against a basket of major currencies.

Silver futures for September delivery fell 2.1 percent to$27.672 an ounce in New York.

On the New York Mercantile Exchange, platinum futures forOctober delivery dropped 0.9 percent to $1,477.70 an ounce,ending a three-session rally. Palladium futures for Septemberdelivery slipped 2.2 percent to $585.75 an ounce.