Gold Ends Lower As Ukraine, Middle East Worries Ease

(RTTNews) - Gold futures ended lower for a second straight session Monday, with a recovery in global equity markets prompting investors to seek riskier assets. Easing geopolitical worries following a new 3-day truce in the Gaza Strip and pro-Russian militants' offer for a ceasefire also contributed gold's slight weakness.

Meanwhile, news reports say Russia has concluded its military exercises along the border with eastern Ukraine and has reportedly sent back troops to its bases.

Gold for December delivery, the most actively traded contract, slipped $0.50 to close at $1,310.50 an ounce on the Comex division of the New York Mercantile Exchange on Monday.

Gold for December delivery scaled an intraday high of $1,312.90 and a low of $1,306.40 an ounce.

On Friday, gold futures ended lower after trading higher for much of the session amid worries over Russia reacting aggressively to sanctions from the U.S. and the European Union, and U.S. President Barack Obama ordering limited airstrike on Iraq to thwart advancing Islamic militants.

A recovery in the U.S. equity market and some strong economic data halted gold's rise. Gold gained 1.25 percent for the week.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, edged lower to 795.86 tons on Monday from its previous close of 797.65 tons on Friday.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 81.45 on Monday, up from its previous close of 81.40 late Friday in North American trade. The dollar scaled a high of 81.49 intraday and a low of 81.40.

The euro traded lower against the dollar at $1.3387 on Monday, as compared to its previous close of $1.3409 late Friday in North American trade. The euro scaled a high of $1.3411 intraday and a low of $1.3380.

In economic news, the Organization for Economic Cooperation and Development said its composite leading index points to stable growth momentum in the region. The composite leading indicators, designed to anticipate turning points in economic activity relative to trend, remained unchanged at 100.5 in June.

The indicators for the United States and Canada also continue to point to stable growth momentum. This is the case for the United Kingdom as well, where the growth momentum remains above-trend rates, it said.

Japan's consumer confidence improved for the third consecutive month in July, data from the Cabinet Office showed Monday. The consumer confidence index rose to 41.5 in July from 41.1 in June.

Meanwhile, Russia's economy grew more than expected in the second quarter, but the rate of growth eased marginally, data showed Monday. Gross domestic product rose 0.8 percent from last year, after expanding 0.9 percent in the first quarter, data from the Federal Statistics Service revealed. It was forecast to grow by 0.7 percent.

Investors will be looking ahead to some Fed speeches and data on U.S. retail sales and consumer sentiment during this week. The U.S. Commerce Department's data on business inventories, data on import and export prices from the Labor Department are due.

Also due this week are the Federal Reserve's industrial production report for July, the results of New York Federal Reserve's manufacturing survey and weekly jobless claims data.