Gold falls from records as investors seek cash

NEW YORK: Gold today retreated from a record as some investors sold the metal to lock in gains and raise cash to cover losses in other markets.

Gold fell by USD 4.60, or 0.3 per cent, to USD 1,504.50 an ounce on the Comex, after reaching a record USD 1,519.20 yesterday.

Silver prices also dropped 2.6 per cent to USD 45.96 an ounce after touching USD 49.845 yesterday, the highest since January 1980.

Commodities snapped a four-day winning streak, led by crude oil and copper, on speculation the Federal Reserve may end its bond-buying program and as China tightened its credit policy.

US Fed Chairman Ben S Bernanke will hold a media conference after the Federal Open Market Committee statement tomorrow following a two-day meeting in Washington, where policy makers are expected to keep borrowing costs near zero.

Silver holdings in the iShares Silver Trust, the biggest exchange-traded fund backed by silver, climbed 239.76 tonnes to a record 11,390.06 tonnes as of April 25 from 11,150.30 tonnes on April 21.