NEW YORK — Gold fell Thursday at the New York Commodity Exchange for the third straight day, bringing its total drop for the week to $16.30, as traders continued to see low inflation.
Gold dropped $4.50 Thursday to $334.10 an ounce on the Comex. The Republic National Bank of New York later quoted a bid of $334.75, off $5.25.
The belief that inflation is under control prompted the gold selloff, said David Ryan, chief bullion trader at Dean Witter Reynolds Inc. Gold traditionally is seen as a hedge against inflation.
Dealers said gold's decline was also linked to a drop in platinum prices, based on concerns that a sluggish Japanese economy would reduce demand for the metal, used in manufacturing of automobiles.
October platinum deliveries dropped $6.40 to $347.90 an ounce on the New York Mercantile Exchange. On New York's Commodity Exchange, August silver fell 0.5 cent to $3.762 an ounce.