Gold Declines As Stock Market's Rally Reduces Safety Demand

Gold futures on the COMEX Division of the New York Mercantile Exchange ended lower on Monday as the equity market soared, reducing gold's safety appeal. Silver fell, but platinum finished higher.

Gold price for June delivery lost 9.60 U.S. dollars, or 1 percent, to settle at 921.70 dollars an ounce.

Investors have been keeping an eye on economic statistics to find whether the economy is on the way to recover or not. And any sign that indicates an improving situation may result in gold's appeal decrease.

The National Association of Home Builders/Wells Fargo housing market index rose two points to 16 in May, the highest level since last September.

The index hit an all-time low of 8 in January as mounting layoffs, strict mortgage requirements and the worsening U.S. economy suppressed demand for new homes.

Meanwhile, the Washington-based trade group's Housing Opportunity Index, which measures buyers' purchasing power rose to its highest level in 18 years.

As the bullish data sparked the Dow industrials to surge 165 points, or 2 percent by the end of gold floor trading time, investors opted to sell the gold since the precious metal's safe-haven attraction is not as strong as it was.

July silver finished at 13.83 dollars per ounce, down 18 cents. July platinum rose 28.60 dollars to 1137.60 dollars an ounce.