Gold Ends Lower, Still Just Above $1,200

(RTTNews) - Gold futures ended lower Monday, after data from the U.S. showed pending home sales index to have increased, albeit less than expected, even as the dollar weakened against a basket of major currencies. Volumes, as expected, continued to be very low due to the New Year holidays.

Gold for February delivery, the most actively traded contract, dropped $10.20 or 0.8 percent to close at $1,203.80 an ounce Monday on the Comex division of the New York Mercantile Exchange.

Gold for February delivery scaled an intraday high of $1,215.80 and a low of $1,200.20 an ounce.

Earlier in the month, gold settled at a more than three-year low after the U.S. Federal Reserve decided to begin tapering its quantitative easing program effective January, following its two-day policy review meet that concluded Wednesday.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved down to 801.22 tons from 804.22 tons.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 79.99 on Monday, down from its previous close of 80.34 late Friday in North American trade. The dollar scaled a high of 80.43 intraday and a low of 79.93.

The euro traded higher against the dollar at $1.3805 on Monday, as compared to its previous close of $1.3758 late Friday in North America. The euro scaled a high of $1.3820 intraday and a low of $1.3729.

In economic news from the U.S., the National Association of Realtors said its pending home sales index inched up 0.2 percent to 101.7 in November from a downwardly revised 101.5 in October. Economists expected the index to jump by about 1.5 percent.

Despite the increase in jobless figures in November, the government maintained that unemployment is falling in France. Citing the data over several months, the ministry said the rising trend in unemployment has started to reverse in the fourth quarter.

From the Europe, Switzerland's current account surplus for the third quarter increased from the same period last year, data from the Swiss National Bank showed. The current account surplus rose to CHF 19.7 billion from CHF 13.7 billion in the same period a year ago. In the second quarter, the current account surplus was CHF 20.2 billion.