Gold Edges Down To End Below $1,300

(RTTNews) - Gold futures snapped a three-day winning streak to end a tad lower on Monday, ahead of the two-day Federal Open Market Committee meet beginning Tuesday. Investors also mulled over the growing tensions between Russia and the West with the U.S. announcing additional sanctions against Moscow.

Nonetheless, gold pulled back to limit losses as U.S. equities trended lower.

In the continuing ongoing friction between the U.S. and Russia over Ukraine, the Obama administration on Monday introduced another round of sanctions although many analysts see them as less severe than expected. The U.S. moved to freeze assets of seven Russian officials with travel bans, while thirteen more companies were brought into the gambit of trade restrictions with the U.S., limiting export or re-export of American-made products to them.

The U.S. has also revealed a new policy that will deny Moscow access to high-technology items which may go toward enhancing Russia's military prowess. All existing licenses to this end will also be revoked.

Gold for June delivery, the most actively traded contract, edged down $1.80 or 0.1 percent to close at $1,299.00 an ounce on the Comex division of the New York Mercantile Exchange on Monday.

Gold for April delivery scaled an intraday high of $1,306.60 and a low of $1,292.10 an ounce.

Last week, gold futures gained about 0.5 percent for the week, on a three-day winning streak. Investors opted for the safe haven appeal of the precious metal as tensions mounted in Ukraine.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, remained unchanged at 792.14 tons on Monday from its previous close of 794.14 tons.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 79.70 on Monday, down from its previous close of 79.77 late Friday in North American trade. The dollar scaled a high of 79.84 intraday and a low of 79.55.

The euro traded higher against the dollar at $1.3852 on Monday, as compared to its previous close of $1.3846 late Friday in North America. The euro scaled a high of $1.3880 intraday and a low of $1.3816.

In economic news, pending home sales saw a more than anticipated rise in March with the National Association of Realtors' pending home sales index surging up 3.4 percent to 97.4 in the month, after edging down by 0.5 percent to a revised 94.2 in February. Economists expected a much more modest increase of about 0.6 percent.

Meanwhile, Germany's economic growth is set to lose momentum in the second quarter after a strong start to the year, Bundesbank said in its monthly report on Monday. The central bank indicated weakness in industrial orders as compared to the strong growth in the first quarter. However, economic activity shows upward trend in the second quarter, the bank added. The first quarter GDP data is due on May 15.