Gold futures on the COMEX division of the New York Mercantile Exchange fell for the second straight session Monday, as larger demand for U.S. stocks and the pressure of a higher dollar caused the precious metal to close at its lowest level since mid-September.
The most active gold contract for December delivery sharply fell $22.1, or 1.26 percent, to settle at $1,737.6 per ounce.
Gold traded as low as $1,729.7 an ounce before recovering slightly to close just below the $1,740 an ounce trading level. That loss came on the heels of a more than $10 decline last Friday, meaning that the precious metal has now lost a total of $33 since Thursday.
Pressuring gold Monday was the presence of a stronger dollar for the majority of the trading session. The greenback rose in response to continued uncertainty over the eurozone regarding key meetings Thursday and Friday, as investors sought a safe haven. A higher dollar pressures commodities like gold, as it makes them more expensive to holders of other currencies.
U.S. retail sales rose 1.1 percent in September, igniting a rally in U.S. equities as traders responded to the above-expectation sales numbers. However, this positivity in the U.S. stock market ultimately did not extend to the gold market, as traders saw the precious metal as less appealing than U.S. stocks, and preferred to invest in equities on Monday.
Also buoying U.S. equities was data out of China showing that the country's September exports rose 9.9 percent. Additionally, the Chinese consumer price index rose 1.9 percent in September, a monthly decline from the two percent rise posted in August. Despite gold's loss on the session, some analysts believe the decline in inflation could give China greater leeway to implement economic stimulus measures, which traditionally support gold and could give the precious metal some underlying support.
Silver for December delivery sharply fell 92.6 cents, or 2.75 percent, to close at $32.743 per ounce.
(c) 2012 Xinhua News Agency - CEIS. Provided by ProQuest LLC. All rights Reserved.
Most Popular Stories
- Neighbor Warns Chris Brown to Stay Off His Property
- Venezuelan Officials Banned From Traveling in U.S.
- Hispanic Arts Leaders Unite Across the Border
- Adrienne Bailon Disses Ex-Lover Rob Kardashian
- NSHMBA Names Lincoln as Automotive Partner
- Islamic State Fights for Control of Syrian Oil Wealth
- Hiring on the Rise at Small Businesses
- 3.4 Million Now Insured Under Covered California
- Jerry Brown Favors More Shelters for Immigrant Kids
- How to Fit Green Energy Into Your Portfolio