Gold Ends Below $1,300 On Global Cues

(RTTNews) - Gold futures ended lower for a second straight session on Monday, with investors seeking riskier assets while tracking rebounding global equity markets. The precious metal found little support with the dollar trending higher against some select currencies, after some upbeat homebuilder confidence data from the U.S.

Nonetheless, recent weak data from the eurozone and lingering geopolitical concerns continue to limit the precious metal's downside.

There appears to be little clarity in the geopolitical tensions prevailing in Ukraine and Iraq. While government forces in Ukraine continued their protracted fight against pro-Russian separatists, the separatists claim to have taken down a Ukrainian plane.

In Iraq, the U.S. air force continued to target areas surrounding the strategic Mosul Dam in an effort to dislodge Islamic State militants and help Kurdish forces retake the region.

In some positive economic indicator, homebuilder confidence in the U.S. unexpectedly improved for a third consecutive month in August, to its highest level in seven months, a report from the National Association of Home Builders showed Monday. This was the highest level for the index since January this year.

Gold for December delivery, the most actively traded contract, shed $6.90 or 0.5 percent to close at $1,299.30 an ounce on the Comex division of the New York Mercantile Exchange on Monday.

Gold for December delivery scaled an intraday high of $1,304.90 and a low of $1,296.50 an ounce.

On Friday, gold futures snapped a three-day winning streak to end lower, amid some mixed economic data and uncertainty about the timing of likely monetary tightening. Gold shed about 0.37 percent last week.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, remained unchanged at 795.60 tons on Monday from its previous close.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 81.56 on Monday, up from its previous close of 81.45 late Friday in North American trade. The dollar scaled a high of 81.61 intraday and a low of 81.38.

The euro lower higher against the dollar at $1.3365 on Monday, as compared to its previous close of $1.3392 late Friday in North American trade. The euro scaled a high of $1.3399 intraday and a low of $1.3354.

In economic news from the U.S., homebuilder confidence unexpectedly improved for the third consecutive month in August, a report from the National Association of Home Builders showed Monday. The NAHB/Wells Fargo Housing Market Index climbed to a reading of 55 in August from 53 in July. Economists expected the index to come in unchanged compared to the previous month.

Among the key economic events this week include the FOMC minutes, data on U.S. new home and existing home sales in July, report on weekly jobless claims, the Philadelphia Federal Reserve's manufacturing survey for August, and consumer price inflation report for July. The Conference Board's economic indicators are also in focus this week.

In economic news from the eurozone, data from Eurostat showed eurozone trade surplus to have increased unexpectedly in June, rising to EUR 16.8 billion from EUR 15.4 billion in May. Economists expected the trade surplus to decrease to EUR 15.1 billion.

Meanwhile, Bundesbank in its monthly report said geopolitical tensions may weigh on Germany's economic outlook.