Gold futures settled lower Monday, fluctuating much of the day for want of direction after an impressive run last week with the Federal Reserve announcing new quantitative easing measures. There was little support for gold as the dollar traded higher against a basket of major currencies and the euro. A rising dollar makes it expensive for international buyers as the precious metal is traded in dollars globally.
Gold for December delivery, the most actively traded contract, dropped $2.1 or 0.1 percent to close at $1,770.60 an ounce Monday on the Comex division of the New York Mercantile Exchange.
Gold for December delivery traded at an intraday high of $1,778.90 and a low of $1,767.00 an ounce.
Last week, gold surged nearly 2 percent to hit a fresh seven-month high after the U.S. Federal Reserve announced the much anticipated third round of quantitative easing measures following its two-day policy meeting.
The euro traded lower against the dollar at $1.3107 on Monday, as compared to $1.3122 late Friday in North America. The euro scaled a high of $1.3171 intraday and a low of $1.3084.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 78.92 on Monday, up from 78.84 in North American trade late Friday. The dollar scaled a high of 79.04 intraday and a low of 78.72.
In economic news from the U.S., the Federal Reserve Bank of New York said its general business conditions index dropped to a negative 10.41 in September from a negative 5.85 in August, with a negative reading indicating a contraction in regional manufacturing activity. Economists expected the index to a negative 2.0.
Elsewhere, the eurozone trade surplus rose to 15.6 billion euro in July from 13.6 billion euro in June, Eurostat said. In July 2011, the trade surplus totaled 2.1 billion euro. Exports dropped 2 percent month-on-month in July after rising 2.4 percent in June. Likewise, imports fell 1.2 percent, reversing last month's 0.7 percent rise.
From the U.K., house prices dropped for a second consecutive month in August, recording the biggest-ever fall for the month as home buyers disengaged themselves from property search during key Olympic events. New sellers' reduced asking prices by an average 2.4 percent from a month earlier to GBP236,260 in August, Rightmove said Monday. This followed a 1.7 percent dip in July and was the the largest August fall Rightmove has ever recorded.
by RTT Staff Writer
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