Gold Ends Lower On Uncertainty Over Fed Plans

(RTTNews) - Gold futures snapped a two-day gain to end sharply lower Monday, as investors turned to riskier equity assets, tracking the mostly rising global markets. Gold prices slipped over concerns the Federal Reserve would begin tapering its $85 billion quantitative easing program sooner than later, with three influential members of Fed set to comment later in the day. Investors also await some crucial economic data for the week to take a stand, even as the dollar turned lower against a basket of major currencies.

Gold for December delivery, the most actively traded contract, plummeted $15.10 or 1.2 percent to close at $1,272.30 an ounce Monday on the Comex division of the New York Mercantile Exchange.

Gold for December delivery scaled an intraday high of $1,289.20 and a low of $1,269.20 an ounce.

Last week, gold settled marginally higher after Federal Reserve chairwoman-designate Janet Yellen said the U.S. central bank is in no hurry to taper down its quantitative easing program.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 865.71 tons.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.75 on Monday, down from 80.81 late Monday in North American trade. The dollar scaled a high of 80.92 intraday and a low of 80.57.

The euro traded higher against the dollar at $1.3509 on Monday, as compared to its previous close of $1.3497 late Friday in North America. The euro scaled a high of $1.3541 intraday and a low of $1.3476.

In economic news from the U.S., a report released by the National Association of Home Builders revealed the NAHB/Wells Fargo Housing Market Index at 54 in November, unchanged from the revised reading for October. Economists expected the index to come in unchanged compared to the 55 originally reported for the previous month.

Elsewhere, euro area current account surplus declined to a seasonally adjusted EUR 13.7 billion in September from EUR 17.9 billion in August, the European Central Bank reported. Surplus on goods trade decreased to EUR 13.7 billion from EUR 14.7 billion in August. Likewise, the surplus on services dropped to EUR 7.6 billion in September from EUR 8.2 billion.

Meanwhile, eurozone foreign trade surplus increased markedly in September, data from the statistical office Eurostat showed. The region's trade in goods with the rest of the world resulted in a surplus of EUR 13.1 billion in September, up from EUR 6.9 billion surplus in August. A year earlier, the surplus amounted to 8.6 billion.