Gold futures snapped a two-day gain to settle lower Monday, after fluctuating for much of the day, mostly on selling pressure with the dollar trading lower. This is despite continued expectations of further quantitative easing from central banks to stimulate economic growth and as well tackle the eurozone sovereign debt crisis in the near future.
Gold for December delivery, the most actively traded contract, dropped $3.40 or 0.2 percent to close at $1,612.80 an ounce Tuesday on the Comex division of the New York Mercantile Exchange.
Gold for December delivery traded at an intraday high of $1,621.30 and a low of $1611.70 an ounce.
Gold ended higher yesterday, on continued hopes of further quantitative easing, with investors buoyant on some positive jobs data from the U.S. late last week.
The euro traded higher against the dollar at $1.2419 on Tuesday, as compared to $1.2400 late Monday in North America. The euro scaled a high of $1.2441 intraday and a low of $1.2376.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 82.125 on Tuesday, down from from 82.186 in North American trade late Monday. The dollar scaled a high of 82.40 intraday and a low of 82.04.
In economic news from the eurozone, German manufacturing orders declined more than expected in June, data from the Federal Ministry of Economy and Technology showed. Factory orders fell 1.7 percent month-on-month in June, while analysts expected orders to drop 0.8 percent. In May, orders recorded a 0.7 percent increase.
Meanwhile, production in the British industrial sector shrunk notably in June due mainly to extra holidays related to the Queen's Diamond Jubilee celebrations, data from the Office for National Statistics showed.
by RTT Staff Writer
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