PRECIOUS-Gold tumbles along with sharp losses in crude, equities

Wed Apr 3, 2013 1:48pm EDT

* Gold hits 9-month low, down 1.5 pct in commodities
sell-off
    * Bullion breaks below $1,550/oz, hits weakest since June

 (Adds analyst comment, market activity, changes byline, pvs
LONDON)
    By Frank Tang
    NEW YORK, April 3 (Reuters) - Gold dropped 1.5 percent on
Wednesday, tumbling to a nine-month low near $1,550 an ounce as
deepening losses in crude oil and equities triggered a sell-off
of commodities.
    Bullion, a traditional inflation hedge, came under heavy
pressure as swelling U.S. crude stockpiles indicated a
struggling economy with limited demand for fuel. 
    Safe-haven buying was absent as weaker U.S. equities weighed
down on assets across the board after a disappointing U.S.
private-sector job report. 
    "This is clearly not a rush to the exit as there is still
plenty of fear in the market, but we have clearly shifted more
toward a bear trend," said Robert Haworth, senior investment
strategist at U.S. Bank Wealth Management.
    Hopes for an economic recovery in the United States and a
possible halt to Bank of Japan's monetary easing, which could
come at its policy meeting later this week, have made it tough
for investors to like gold, Haworth said.      
    Spot gold was down 1.6 percent to $1,550.50 an ounce
by 1:16 p.m. EST (1716 GMT), having hit an earlier low of
$1,549.69, a level last seen in June 28, 2012.
    The precious metal fell sharply for a second day after its
previous session's 1.4 percent drop, as safe-haven buying dried
up on rallying global stock markets. 
    U.S. gold futures for April delivery fell $25.90 to
$1,550 an ounce, with trading volume set to finish in line with
its 30-day average, preliminary Reuters data showed.
    Spot silver fell 1.6 percent to $26.76 an ounce,
having earlier hit $26,72, its lowest level since July 2012.
    Among platinum group metals, platinum was down 2.5
percent to $1,530.24 an ounce, while palladium dropped
1.6 percent to $751.50 an ounce.
 Prices at 1:16 p.m. EST (1716 GMT)                           
 
                               LAST      NET    PCT     YTD
                                         CHG    CHG     CHG
 US gold                    1550.00   -25.90  -1.6%   -7.5%
 US silver                   26.705   -0.543  -2.0%  -11.7%
 US platinum                1534.20   -40.00  -2.5%   -0.3%
 US palladium                754.15   -15.25  -2.0%    7.2%
 
 Gold                       1550.50   -24.74  -1.6%   -7.4%
 Silver                       26.76    -0.44  -1.6%  -11.7%
 Platinum                   1530.24   -39.26  -2.5%   -0.5%
 Palladium                   751.50   -12.50  -1.6%    7.1%
 
 Gold Fix                   1574.75     6.25   0.4%   -5.4%
 Silver Fix                   27.19   -77.00  -2.8%   -9.2%
 Platinum Fix               1569.00     8.00   0.5%    3.0%
 Palladium Fix               765.00     4.00   0.5%    9.4%
 
 (Additional reporting by Jan Harvey in London; Editing by David
Goodman and Grant McCool)
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