Gold ends lower on higher US dollar

Gold futures on the COMEX division of the New York Mercantile Exchange futures ended lower Tuesday as pressure from strength in the U.S. dollar, a rally in equities and reductions to the metal's price forecasts outweighed earlier support from what analysts referred to as an oversold condition. The most active gold contract for June delivery fell 7.7 dollars, or 0.56 percent, to settle at 1,378.9 dollars per ounce. Gold prices last week climbed about 1.6 percent, the best weekly performance since the week ended April 26, on the heels of weaker global equities and a decline in the dollar. Still, gold futures have fallen more than 6 percent this month. According to market analysts, the market witnessed a bearish pressure from a strong equities rally, a stronger U.S. dollar, better-than-expected economic data and gold-price forecast reductions from some banks. Gold's close lower came as analysts at J.P. Morgan Cazenove slashed the outlook for the metal in 2013 to 1,595 dollars an ounce from 1,745 dollars. In the short term, the analysts cut the gold outlook 18 percent to 1,450 dollars in the second quarter, while lowering the 2015 forecast by 5 percent to 1,650 dollars an ounce. Bank of America Merrill Lynch also cut its 2013 forecast on gold by 12 percent to 1,478 dollars an ounce. The analysts said higher growth, rising nominal yields and subdued inflationary pressure have all limited investor buying, according to reports. Silver for July delivery fell 30.3 cents, or 1.35 percent, to close at 22.193 dollars per ounce.