Gold Ends Lower After Iran Deal

(RTTNews) - Gold futures ended lower Monday, losing some of its shine as a safe haven asset after the six western powers and Iran reached an agreement on the Middle East country's nuclear program. The precious metal trended lower amid a generally steady dollar, with holdings of the biggest bullion-backed exchange-traded fund dropping the most in three weeks.

The six world powers and Iran reached an initial agreement early Sunday that halts the progress of Iran's nuclear program and rolls it back in key respects. The initial, six month step includes significant limits on Iran's nuclear program and will address the most urgent concerns, including the Middle East country's enrichment capabilities, its existing stockpiles of enriched uranium, the number and capabilities of its centrifuges, and its ability to produce weapons-grade plutonium using the Arak reactor.

In return, as part of the initial step, the P5+1 will provide limited, temporary, targeted, and reversible relief to Iran. The relief is structured so that the overwhelming majority of the sanctions regime, including the key oil, banking, and financial sanctions architecture, remains in place.

Gold for December delivery, the most actively traded contract, shed $2.90 or 0.2 percent to close at $1,241.20 an ounce Monday on the Comex division of the New York Mercantile Exchange.

Gold for December delivery scaled an intraday high of $1,244.40 and a low of $1,225.70 an ounce.

Last week, gold lost over 3 percent on some upbeat economic data out of the U.S., and as the Federal Reserve policy review Wednesday hinted at a possible taper to its quantity easing program sooner than later.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, edged down to 852.21 tons form 856.71 tons.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.93 on Monday, up from 80.65 late Friday in North American trade. The dollar scaled a high of 81.02 intraday and a low of 80.68.

The euro traded lower against the dollar at $1.3515 on Monday, as compared to its previous close of $1.3549 late Friday in North America. The euro scaled a high of $1.3559 intraday and a low of $1.3490.

In economic news from the U.S., the the National Association of Realtors said its pending home sales index dipped 0.6 percent to 102.1 in October from an upwardly revised 102.7 in September. The modest drop came as a surprise to economists, who had been expecting pending sales to rise by 1.1 percent.

From the eurozone, business sentiment among French manufacturers in November remained unchanged at 98, data from the statistical office Insee revealed. The reading was forecast to drop to 97. The balance of opinion on personal production expectation dropped again, to 1 from 8 a month ago.