Gold fell Friday as strong gains in the dollar left less appetite for the precious metal as an alternative asset. Gold for April delivery, the most actively traded contract, was recently down $9.90, or 0.6 percent, at $1,712.30 a troy ounce on the Comex division of the New York Mercantile Exchange. The dollar snapped higher Friday as some traders closed out bets against the currency. Some investors had been expecting a third round of asset purchases from the Federal Reserve, which would likely weigh on the dollar and send investors seeking gold as an alternative. But that outlook unwound this week. Testimony from Federal Reserve chairman Ben Bernanke offered no clues about another round of monetary stimulus, sparking a selloff in gold Wednesday as investors saw less need for the metal as a currency hedge. The ICE US Dollar Index, which tracks the currency against those of some major US trading partners, Friday moved to it highest level since Feb. 22, dragging on dollar-denominated gold. Silver, which can also draw interest as a currency alternative, slumped with gold Friday. Silver for May delivery, the most actively traded contract, was recently down 1.9 percent at $34.99 a troy ounce. Following this week's wild swings, analysts are closely watching readings on physical demand for precious metals. Demand for gold bullion, especially from China and India, the world's top two gold consumers, has helped cushion price declines after similar drops in prices during the last year.
