Gold Ends Higher As Dollar Weakens

(RTTNews) - Gold futures snapped a two-day loss to end marginally higher on Monday, as the dollar weakened against some major currencies and on hopes the U.S. Federal Reserve would would not taper its quantitative easing program for some time in the future. Gold prices were also supported by some speculation the European Central Bank may cut interest rates to further boost its economy.

In some economic news, new orders for U.S. manufactured goods showed a notable increase in September, with orders rebounding after showing an unexpected decrease in August, a Commerce Department report showed Monday. Last week, China's purchasing managers' index, a measure of factory sector performance, rose to 51.4 in October from 51.1 in September, which was ahead of economists' estimates of 51.2 rise.

Gold for December delivery, the most actively traded contract, gained $1.50 to close at $1,314.70 an ounce Monday on the Comex division of the New York Mercantile Exchange.

Gold for December delivery scaled an intraday high of $1,322.40 and a low of $1,310.80 an ounce.

Last week, gold lost about 3 percent as the dollar strengthened against some major currencies after the U.S. Federal Reserve kept its quantitative easing program intact following a policy review meet.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved down to 866.32 tons from 872.02 tons.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.62 on Monday, down from 80.72 late Friday in North American trade. The dollar scaled a high of 80.93 intraday and a low of 80.53.

The euro traded higher against the dollar at $1.3513 on Monday, as compared to its previous close of $1.3487 late Friday in North America. The euro scaled a high of $1.3524 intraday and a low of $1.3442.

In economic news from the U.S., the Commerce Department said factory orders jumped by 1.7 percent in September after edging down by 0.1 percent in August. While the increase in orders in September matched economist estimates, orders had been expected to rise by 0.3 percent in the previous month.

Meanwhile, Institute for Supply Management-New York's current business conditions index for the New York City region improved in October to 59.3 from 53.6 in September. The index was at 60.5 in August. A reading above 50 indicates expanding activity.

From the eurozone, Germany's manufacturing sector grew at a faster-than-expected rate during October, led by growth in production and new orders, survey data released by Markit Economics showed .The final Markit/BME Germany Manufacturing Purchasing Managers' Index rose to 51.7 from September's 51.1. The flash estimate was 51.5.

Meanwhile, the eurozone manufacturing sector carried its modest third quarter recovery into the final quarter of the year as initially estimated, final data from Markit Economics showed. The manufacturing Purchasing Managers' Index rose to 51.3, in line with flash estimate from 51.1 in September.

Elsewhere, the U.K. construction output grew at the steepest pace since September 2007, survey results from Markit Economics showed. The Markit/Chartered Institute of Purchasing & Supply construction Purchasing Managers' Index came in at 59.4 in October, up from 58.9 in September and above the 50.0 no-change threshold for the sixth consecutive month.