Gold Falls as U.S. Equities Rise to Record on Economic Outlook

Bloomberg (24/12) -- Gold futures fell as U.S. equities rose to a record amid signs of an improving U.S. economy, reducing demand for the metal as an alternative investment.

The International Monetary Fund plans to raise its outlook for the U.S. economy. The Standard & Poor’s 500 Index of stocks climbed as much as 0.6 percent. On Dec. 19, gold closed at the lowest in more than three years after the Federal Reserve said it will slow stimulus amid improving job-market prospects. Gold futures for February delivery fell 0.6 percent to settle at $1,197 an ounce at 1:37 p.m. on the Comex in New York. On Dec. 19, the metal closed at $1,193.60, the lowest for a most-active contract since Aug. 3, 2010. Gold has tumbled 29 percent this year, heading for the first annual annual drop since 2000 and the biggest slump since 1981. The Fed said on Dec. 18 it will cut monthly asset purchases to $75 billion from $85 billion, while pledging to keep interest rates near zero percent. Money managers increased their short gold positions by 1.2 percent to 75,199 Comex contracts in the week ended Dec. 17, within 6 percent of the record in July, government data showed on Dec. 20. Silver futures for March delivery fell 0.2 percent to $19.413 an ounce on the Comex.