SAN FRANCISCO (MarketWatch) — Gold futures sank below $1,400 an ounce on Wednesday, logging their lowest close in almost four weeks as the U.S. dollar strengthened, equities climbed and outflows from gold exchange-traded funds continued.

“Whatever the long-run benefits of holding gold in a portfolio, the fact that both the U.S. dollar and equities are showing such strength right now tells us that now is not gold’s moment in the sun,” said Ben Traynor, chief economist at BullionVault.

“ ‘The fact that both the U.S. dollar and equities are showing such strength right now tells us that now is not gold’s moment in the sun.’ ” — Ben Traynor, BullionVault

Gold for June delivery GCM23, fell $28.30, or 2%, to settle at $1,396.20 an ounce on the Comex division of the New York Mercantile Exchange. Prices marked their lowest close since April 19.

Including Wednesday’s loss, prices have fallen for five straight sessions and lost more than 5% during that losing streak.

July silver futures SIN23, sank 72 cents for the session, or 3.1%, to end at $22.66 an ounce.

The decline in gold prices came as the U.S. dollar climbed against its major rivals, with the ICE dollar index DXY, -0.32% at 83.848, compared with late Tuesday’s 83.575 level.

“Gold is directly confronting the probability that the U.S. dollar will ascend higher, taking a variety of forex signals back to days not seen since at least 2006,” said Richard Hastings, a macro strategist at Global Hunter Securities.

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“This has very large implications for many things, and gold is very exposed here,” he said. “When the Japanese yen USDJPY, -0.02% selling wave began in November 2012, the risk of an extensive and prolonged impact on gold prices had to be thrown onto the table, and now we are seeing that gold prices are doing a great job of saying the dollar goes higher against the euro.”

The euro EURUSD, +0.04% dropped to a six-week low against the dollar on a closing basis Wednesday after data showed the French economy slid into a recession, with its gross domestic product slipping 0.2% in the first quarter from the three month period ended Dec. 31.

Figures released separately also showed Germany’s economy rose 0.1% during the first quarter, undershooting expectations for a 0.3% improvement.

The dollar has been shedding its haven status, rising with expectations of better U.S. economic growth and an expected end to the Federal Reserve’s quantitative easing. Those gains, combined with a broad, record-breaking rally in stocks, have curbed demand for gold as a hedge against dollar weakness and poor economic times.

The metal has fallen nearly 17% year to date.

Flow toward equities

In addition to dollar strength, investors’ switch from gold into equities is also weighing on gold prices, analysts said.

Gold extends losses into a fifth straight session. Bloomberg News

“With Europe struggling and interest rates still at historic lows, a lot of capital has been pushed into equities,” said BullionVault’s Traynor.

U.S. equities on Wednesday moved higher after a gauge of home-builder sentiment gained in May. European stocks also rose as weak growth data from the euro zone raised hopes the European Central Bank would consider more measures to boost the economy. In Asia, Japanese shares soared on the back of a weaker yen.

Gold hasn’t benefited because the “broader investing world is not as scared as it has been at times in the recent past,” Traynor said. “Gold ETFs have seen huge outflows this year.”

Gold holdings in the largest U.S. gold-backed ETF, the SPDR Gold Trust GLD, -0.54% , were at 1,051.65 metric tons Tuesday, down about 298 metric tons from 1,349.92 metric tons on Jan. 2.

On Wednesday afternoon, shares of the ETF were down 2%. The Philadelphia Gold and Silver Index XAU, -1.28% also lost 2.8%.

Elsewhere in the metals complex, July copper HGN23, fell 2 cents, or 0.7%, to $3.265 a pound. June palladium US:PAM3 closed at $729.05 an ounce, up $1.90, or 0.3%, while July platinum futures US:PLN3 slipped $11.20, or 0.8%, to $1,490.70 an ounce.