Gold dropped in Asia as a dollar rally continued for a third day, reducing the appeal of the metal as an alternative investment.
Gold for immediate delivery fell as much as 0.4 per cent to $947.92 (Dh3,481) an ounce and traded at $949.92 in Singapore, extending Tuesday's 0.7 per cent loss.
Gold for June delivery lost 0.4 per cent to $949.70 an ounce on the New York Mercantile Exchange's Comex division.
Still, confidence among US consumers jumped in May by the most in six years, fuelling speculation the economy will recover later this year and accelerate inflation.
Concerns about inflation have prompted investors to buy gold as a hedge, adding pressure to supply, said Jonathan Barratt, Managing Director at Commodity Broking Services in Sydney.
However, traders were keeping a cautious eye on the fate of General Motors Corp, for its impact on equities.
US gold futures for June delivery were at $948.60 per ounce, down 0.5 per cent from its settlement.
Among other precious metals for immediate delivery, silver dropped 0.5 per cent to $14.54 an ounce and platinum was little changed at $1,136.50 an ounce, while palladium fell 0.2 per cent to $231.
