Gold down on stronger equities

Gold futures on the COMEX division of the New York Mercantile Exchange dropped Wednesday as stronger equities lured away investors.

The most active gold contract for August delivery fell 1.6 U.S. dollars, or 0.12 percent, to settle at 1,304.7 dollars per ounce.

Analysts noted that the record rise of the S&P 500 index brought investors away from gold's safe haven to equities, despite geopolitical risks. Some analysts hold that there is slight upside potential in the short-term, but gains in the dollar against the euro weighed dollar-denominated gold.

Additionally, analysts say gold will receive virtually no support from Indian demand, despite earlier hopes that gold import restrictions might be positive for gold.

Silver for September delivery lost 1.3 cents, or 0.06 percent, to close at 20.995 dollars per ounce. Platinum for October delivery lost 1.6 dollars, or 0.11 percent, to close at 1,486.7 dollars per ounce.