NEW YORK (MarketWatch) -- Gold futures erased earlier gains Wednesday, falling slightly as rising crude oil and U.S. stocks increased investors' risk appetite and reduced the metal's investment appeal.
Limiting gold's losses, the U.S. dollar fell against most of its major rivals.
Gold for April delivery, the most active contract, fell $1.90, or 0.2%, to $911.70 an ounce on the Comex division of the New York Mercantile Exchange. It had fallen 9% in the past seven sessions after the metal topped $1,000 an ounce on Feb. 20.
The "global rally in equity markets turned would-be gold buyers into actual stock buyers," said Jon Nadler, senior analyst at Kitco Bullion Dealers. "The metal appeared poised to test $900 once again."
Global stock markets rose Wednesday, rebounding from their recent slumps that had sent indexes to multiple-year lows. Asian stocks ended mostly higher with Chinese shares rallying on hopes that further stimulus measures may include market-supportive moves.
On Wall Street, the Dow Jones Industrial Average rose as much as 100 points.
Meanwhile, crude oil for April delivery gained 6.7% to $44.51 a barrel, also taking a cue from rising stocks. See Futures Movers.
In China, the world's second-biggest oil consumer, premier Wen Jiabao is considering new stimulus measures, adding to a $585 billion spending plan to revive the country's economy, former statistics bureau chief Li Deshui said in Beijing ahead of the National People's Congress.
ADP data
Gold had traded higher earlier in the session after data indicated the U.S. economy in February lost more jobs than expected.
U.S. private-sector firms cut 697,000 jobs in February, according to the ADP employment index, which is based on company payroll records.
The index does not include government jobs. Adding in the 12,000 jobs typically gained in the public sector each month, the ADP report points to nonfarm payrolls falling by 685,000, compared with the MarketWatch consensus of 640,000. See full story.
"Given that the global financial and economic system is effectively ruptured, wealth preservation and risk aversion is likely to remain evident in the coming months and indeed years," wrote Mark O'Byrne, executive director at Gold and Silver Investments.
In currencies trading, the U.S. dollar fell against most of its major rivals after the jobs data, with the dollar index down 0.3% at 89.145. A weaker dollar tends to push up dollar-denominated gold prices.
In other metals trading, March copper rose 3.6% to $1.653 a pound. March silver rose 2.8% to $13.045 an ounce, while April platinum added 0.8% to $1,044.60 an ounce and the March contract for sister metal palladium advanced 0.7% to $193.55 an ounce.
