Gold Caps Longest Decline Since August on Global Equity Rally

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Gold futures fell, capping the longest slump since August, as a rally in global equities curbed demand for alternate investments.

The MSCI All-Country World Index of stocks rose to the highest since November 2007 as China��s manufacturing expanded at the fastest pace in five months. The Standard & Poor��s 500 Index extended a rally to a record. Increases in equities and the dollar curbed demand for gold, Barclays Plc said in a report.

The metal touched a 17-week low today, partly as tensions eased in Eastern Europe. A majority of Russia��s forces have withdrawn from the border with Ukraine, a U.S. Pentagon spokesman said on May 30. Hedge funds pared bets on a gold rally at the fastest pace this year.

Gold futures for August delivery fell 0.2 percent to settle at $1,244 an ounce at 1:43 p.m. on the Comex in New York. Earlier, the price touched $1,241.10, the lowest for a most-active contract since Feb. 3. The metal fell for a sixth straight session, the longest slump since Aug. 6.

Source : Bloomberg