Gold Ends Lower On Global Growth Concerns

Gold futures settled lower Monday, on some weak economic data from the U.S. and China with commodities and equity markets under pressure. Gold prices were also impacted on global economic growth concerns, not withstanding a weak dollar. Last week, gold ended sharply higher, gaining about 3.7 percent at close on Friday.

Gold for August delivery, the most actively traded contract, dropped $8.20 or 0.5 percent to close at $1,613.90 an ounce Monday on the Comex division of the New York Mercantile Exchange.

Gold traded at an intraday high of $1,629.70 an ounce and a low of $1610.00 an ounce.

Gold prices gained $58.90 an ounce or 3.7 percent last Friday after having touched a low of $1,532. The rally came after investors sought the safe haven status of the precious metal, on some soft jobs data from the U.S. raising hopes of further stimulus for the economy.

The dollar index, which tracks the U.S. unit against six major currencies, was trading at 82.622 on Monday, down from 82.878 in North American trade late Friday. The dollar scaled a high of 83.08 intraday and a low of 82.47.

The euro traded higher against the dollar at $1.2493 on Monday, as compared to $1.2418 late Friday. The euro scaled a high of $1.2508 intraday and a low of 1.2386.

In economic news, a report from the U.S. Commerce Department revealed new orders from U.S. factories dropped short of the slight growth predicted by most economists in April. New orders for manufactured goods in April fell by $2.9 billion, a 0.6 percent drop from revised March data. Updated data show the March decline in new factory orders, initially reported as a 1.5 percent drop from February, was even steeper at a drop of 2.1 percent. Most economists expected factory goods orders to rebound slightly by 0.1 percent growth in April.

China's services sector grew at its slowest in more than a year, with the non-manufacturing Purchasing Manager's Index for May indicating a decline to 55.2 on a 100-point scale. This was the lowest since the seasonally adjusted PMI reading in March 2011. The index showed a reading of 56.1 in April.

Elsewhere, producer prices in eurozone's industrial sector remained unchanged in April, latest figures from Eurostat showed. The producer price index remained flat month-on-month in April against forecast for a 0.2 percent increase. In March, there was a 0.5 percent rise in overall industrial producer prices. Year-on-year, the index rose 2.6 percent, slower than 2.7 percent rise expected by economists. This followed a 3.5 percent rise in March.

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