Gold Ends Lower As Global Equity Markets Roil

(RTTNews) - Gold futures snapped a three-day gain to end lower on Monday, tracking the massive declines in global equity markets, centered on another collapse in Chinese equities and with hints of a bloodbath on Wall Street.

U.S. stock futures are pointing to massive losses again Monday following last week's brutal performance. As Chinese stocks continue to get thrashed, concerns over a Federal Reserve rate hike set off speculations in the market with most major averages on Wall Street spiraling down sharply.

Chinese stocks plummeted over 8 percent, roiling most global equity markets, with European stocks marking their worst performance since 2008.

As a result of the turmoil, some analysts believe the Federal Reserve may postpone any plans of an immediate interest rate hike, may be at least until spring next year.

Gold also found little support with the dollar also taking a beating.

Gold's safe have appeal has made it an attractive, alternate investment to the more riskier stocks, although investors continued to cautiously monitor the precious metal after the mayhem in global equity markets. With ample evidence of China's economy slowing down more than expected, investors continue be wary of any growth in demand for gold as China continues to be one of the biggest consumers of the precious metal.

Gold for December delivery, the most actively traded contract, dropped $6.00 or 0.5 percent, to settle at $1,153.60 an ounce, on the Comex division of the New York Mercantile Exchange on Monday.

Gold for December delivery scaled an intraday high of $1,169.80 and a low of $1,151.80 an ounce.

On Thursday, gold prices for December delivery gained $6.40 or 0.6 percent, to close at $1,159.60 an ounce, with investors seeking the safe haven appeal of the precious metal as the riskier equity assets continued to decline sharply globally on mounting evidence of rough economic patch for China.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved up to 677.83 tons on Monday from its previous close of 675.44 tons on Friday.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 93.54 on Monday, down from its previous close of 94.78 in late North American trade on Monday. The dollar scaled a high of 94.96 intraday and a low of 92.62.

The euro trended higher against the dollar at $1.1568 on Monday, as compared to its previous close of $1.1389 in North American trade late Friday. The euro scaled a high of $1.1626 intraday and a low of $1.1371.

In economic news, the leading index for Japan, which measures the future economic activity, rose less than initially estimated in June, final figures from the Cabinet Office showed Monday. The index was revised downward to 106.5 in June from a preliminary estimate of 107.2. In May, the score was 106.0. The latest reading is the highest since March 2014, when it marked the same 106.5.

The U.K. economy is expected to grow at a faster pace this year as household spending and productivity growth pick up. The Confederation of British Industry forecast 2.6 percent growth this year, up from the prior estimate of 2.4 percent. Similarly, the outlook for 2016 was raised to 2.8 percent from 2.5 percent.