Gold Ends Lower On Mixed Data

(RTTNews) - Gold futures snapped a three-day gain to end lower Monday, on some mixed economic data out of the U.S. and China, even as the dollar weakened against some major currencies. Nonetheless, demand outlook for gold brightened with expectation of increased demand from China linked to its Lunar New Year and on news that India, the world's largest gold consumer, may likely relax curbs on gold import.

Gold for February delivery, the most actively traded contract, slipped $0.60 or 0.1 percent to close at $1,238.00 an ounce Monday on the Comex division of the New York Mercantile Exchange.

Gold for February delivery scaled an intraday high of $1,247.70 and a low of $1,212.60 an ounce.

Last week, gold gained just over 2 percent on bargain buying after recording its worst annual performance in over twelve years in 2013.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 794.62 tons.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.56 on Monday, down from its previous close of 80.87 late Friday in North American trade. The dollar scaled a high of 80.91 intraday and a low of 80.54.

The euro traded higher against the dollar at $1.3647 on Monday, as compared to its previous close of $1.3593 late Friday in North America. The euro scaled a high of $1.3653 intraday and a low of $1.3572.

In economic news from the U.S., activity in the U.S. service sector unexpectedly grew at a slower rate in December, a report from the Institute for Supply Management showed Monday. The ISM non-manufacturing index edged down to 53.0 in December from 53.9 in November, although a reading above 50 still indicates growth in the service sector. The index dropped to its lowest level since hitting 52.8 in June. Economists expected the index at a reading of 54.8.

A Commerce Department report on Monday showed new orders for U.S. manufactured goods rose slightly more than expected in November, with orders for transportation equipment showing a notable rebound. Factory orders increased 1.8 percent in November following a revised 0.5 percent decrease in October. Economists expected orders to rise by 1.6 percent compared to the 0.9 percent drop reported for the previous month.

China's service sector growth slowed in December to the weakest level since August 2011 as new work inflow weakened, a survey by Markit Economics and HSBC showed. The headline services business activity index came in at 50.9 in December, down from 52.5 in November. An index reading above 50 indicates expansion while a reading below 50 suggests contraction.

From the eurozone, German private sector growth slowed more than estimated initially in December, detailed results of a survey by Markit Economics showed. The headline composite output index, that measures combined performance of the country's manufacturing and services industries, fell to 55 in December from 55.4 in November.

Germany's EU harmonized inflation weakened more-than-expected in December, latest data revealed. The harmonized index of consumer prices increased 1.2 percent in December from the corresponding month last year, following a 1.6 percent gain in November. Economists anticipated 1.4 percent growth for December.

Eurozone investor confidence improved sharply in January to its highest since April 2011, a monthly survey by the think tank Sentix showed. The sentiment index rose 3.9 points to 11.9 in January. In Germany, investor sentiment rose to 32.4 in January from 32.1 a month ago.

Meanwhile, eurozone private sector growth accelerated as estimated in December, supported by strong performance of the manufacturing sector, final data from Markit Economics revealed. The seasonally adjusted composite output index, which measures performance of manufacturing and service sectors, rose to a three-month high of 52.1 in December from 51.7 in November. The outcome matched the flash estimates.