Gold futures fell in New York after crude oil and other commodities dropped, cutting the appeal of the precious metal as an inflation hedge.

The greenback rose against the euro even after data from the Commerce Department reported that consumer spending rose by only 0.1 percent in February, making it the worst since September 2006. However, a key measure of inflation rose only 0.1 percent, not including food and energy.

Consumer prices excluding energy and food costs, preferred as a gauge of inflation by Federal Reserve policy makers, increased by a 2 percent annual rate, at the low end of the Fed's forecast of 2 percent to 2.2 percent for this year.

Gold for April delivery fell $23.30 to $925.50 an ounce on the Comex division on the New York Mercantile Exchange after earlier falling as low as $951.10. The precious metal reached a record $1,033.90 an ounce on March 17.

Other precious metals also traded lower. Silver for May delivery fell 75.5 cents to fetch $17.795 on the Nymex, while May copper lost 4.1 cents to $3.8320 a pound.

Light, sweet crude for May delivery lost $2.59 to $104.99 a barrel on the Nymex. Prices have gained $6.72, or 6.6 percent, in the last three days.

Crude oil Precious metal Energy Inflation