Gold falls as investors turn to stock market rally

Commodity prices ended mixed Thursday as a stock market rally cut into demand for safe-haven investments like gold.

Gold prices fell $2.60 to settle at $883.30 an ounce on the New York Mercantile Exchange. Meanwhile, the dollar rose against other major currencies. Gold can fall when the dollar rises because investors use the metal as a hedge against inflation, which can be caused by a weak dollar.

The gyrations came in a shortened week and as stocks bounded higher. Markets are closed for Good Friday.

Stocks jumped Thursday after banking giant Wells Fargo & Co. surprised investors with the prediction it would earn $3 billion for the first quarter because of a strong increase in its lending business. Major stock market indexes rose more than 3 percent Thursday.

A sharp rise in stocks has weighed on demand for gold in recent weeks. Prices have fallen since early March when Wall Street began a rally that lifted major stock market indicators more than 20 percent in less than a month from 12-year lows.

Other metals were mixed Thursday. May silver fell 1 cent to $12.33 an ounce, while May copper futures rose 7.25 cents to $2.071 a pound.

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