Gold drops on technical selling

Gold futures on the COMEX division of the New York Mercantile Exchange closed at the lowest level since April 3 due to technical selling Monday.

The most active gold contract for June delivery dipped 5.4 U.S. dollars, or 0.42 percent, to settle at 1,288.5 dollars per ounce.

Gold has broken the 200-day moving average around 1,299 dollars, which triggered some technical selling. The next support will be the 100-day moving average around 1,277 dollars.

Economic data released Monday were mixed. The Chicago Fed National Activity Index decreased to 0.2 in March from 0.53 in February, while the Conference Board's leading economic index rose 0.8 percent in March, after a 0.5-percent rise in February, signaling that growth could accelerate in coming months.

Investors are also paying attention to the uncertainties in Ukraine. Some market analysts predict that gold will soon find support again in safe-haven demand.

Silver for May delivery dropped 24.5 cents, or 1.25 percent, to close at 19.351 dollars per ounce. Platinum for July delivery lost 28 dollars, or 1.96 percent, to close at 1,400.7 dollars per ounce.