Gold Ends Lower But Gains 3.4% For Week

(RTTNews) - Gold futures ended lower on Monday, on investor concerns over the outlook for U.S. interest rates, although the loss was limited with the dollar weakening against a basket of some major currencies.

However, gold prices gained about 3.4 percent for the week.

Investors also weighed some hawkish comments from Federal Reserve Vice Chairman Stanley Fischer in the recent past, indicating a real possibility of a interest rate hike in September .

Traders remained unsure about the outlook for U.S. interest rates, with the U.S. jobs report for August due at the end of the week likely to determine whether the Federal Reserve hikes rates this year.

The dip in gold prices come despite some sluggish stock markets worldwide. Meanwhile, news reports say the Chinese government has decided to abandon attempts to boost the stock market through large-scale share purchases, with the Financial Times reporting that China's leaders feel they mishandled efforts to rescue the stock market.

Gold for December delivery, the most actively traded contract, fell $1.50 or 0.1 percent, to settle at $1,132.50 an ounce, on the Comex division of the New York Mercantile Exchange on Monday.

Gold for December delivery scaled an intraday high of $1,135.20 and a low of $1,125.00 an ounce.

On Friday, gold prices for December delivery gained $11.40, or 1 percent, to settle at $1,134 an ounce, after some better than expected U.S. gross domestic product data, indicating the economy to be in a much healthier shape than estimated.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, remained unchanged at 682.59 tons on Monday.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 95.94 on Monday, down from its previous close of 95.98 in late North American trade on Friday. The dollar scaled a high of 96.25 intraday and a low of 95.62.

The euro trended higher against the dollar at $1.1219 on Monday, as compared to its previous close of $1.1185 in North American trade late Friday. The euro scaled a high of $1.1263 intraday and a low of $1.1182.

On the economic front, business activity in the Chicago area unexpectedly grew at a slower rate in August, a report from MNI Indicators on Monday. The Chicago business barometer dipped to 54.4 in August from 54.7 in July. While a reading above 50 indicates growth, economists had expected the index to inch up to 54.9.

China's trade deficit in services widened in July, the State Administration of Foreign Exchange said Monday. The deficit on trade in services increased to $17.6 billion in July from $14.9 billion in June. At the same time, the merchandise trade showed a surplus of $46 billion in July.

Eurozone inflation remained unchanged at a very low level in August as further fall in oil prices curbed its ability to move upward. Inflation came in at 0.2 percent in August, the same rate as seen in July and June, preliminary data from Eurostat showed Monday. It was forecast to ease to 0.1 percent.

Germany's retail sales rebounded in July to grow at the fastest pace in nine months, signaling that consumer spending boosted economic growth at the start of the third quarter. Retail sales advanced 1.4 percent on a monthly basis in July, Destatis reported Monday. This was the fastest growth since October 2014, when sales climbed 1.8 percent.