Gold falls on stronger US stock indexes

CHICAGO - Gold futures on the COMEX division of the New York Mercantile Exchange fell on Tuesday as US stock indexes strengthened.

The most active gold contract for April delivery fell 31.1 US dollars, or 1.59 percent, to close at 1,929.7 dollars per ounce.

The Federal Reserve started its two-day monetary policy meeting Tuesday, and is expected to raise interest rate after the meeting closes Wednesday.

Gold was under additional pressure as US Labor Department reported Tuesday that US wholesale prices rose a sharp 0.8 percent in February, signaling that the hottest US inflation in 40 years is unlikely to cool off in the spring. The increase in wholesale prices over the past year stayed at 10 percent for the second month in a row, the highest level in decades.

The New York Fed's Empire State business conditions index plunged 14.9 points to negative 11.8 in March. Economists had expected a reading of 5.5.

Silver for May delivery fell 14 cents, or 0.55 percent, to close at 25.158 dollars per ounce. Platinum for April delivery fell 49.8 dollars, or 4.73 percent, to close at 1,002.5 dollars per ounce.