Gold falls as investors choose dollar over gold

CHICAGO, May 9 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange fell on Monday as investors chose dollar over gold as a safe haven.

The most active gold contract for June delivery fell 24.2 U.S. dollars, or 1.29 percent, to close at 1,858.6 dollars per ounce.

Investors have flocked to the U.S. dollar on Monday instead of the precious metal for a safe haven, as the Federal Reserve is expected to increase interest rates for several more times this year to fight inflation, making gold less appealing a safe haven.

While gold has shed 2.8 percent so far in May, the U.S. dollar index has been up 6.7 percent in May through Monday. Though both being considered safe havens in volatile markets, the dollar is proving the haven asset of choice when the U.S. equity markets kept falling in the wake of the Federal Reserve's entry of interest rate hikes cycle.

The U.S. consumer price index will be released on Wednesday, which may show a peak in inflation, market analysts hold.

Silver for July delivery fell 54.7 cents, or 2.45 percent, to close at 21.82 dollars per ounce. Platinum for July delivery fell 17.5 dollars, or 1.83 percent, to close at 938.5 dollars per ounce.