Gold fell in New York for the first time in four days as traders reduced risk before the results of stress tests on 91 banks in Europe, where a financial crisis sparked a surge in bullion prices last month.
Gold futures jumped to a record $1,429.40 an ounce on concern the U.S. will pump more cash into the economy and Europe’s debt woes will spread, boosting the appeal of the metal as an alternative to currencies.
Gold futures slumped the most in a week on speculation that the U.S. Federal Reserve will continue trimming monetary stimulus, boosting the dollar and cutting the metal’s appeal as an alternative investment.
Gold rose, setting a record for the fourth time this week, as a weakening dollar boosted demand for the precious metal as an alternative asset and an inflation hedge. Silver climbed above $40 an ounce to a 31-year high.