Gold prices drifted lower on Monday as the dollar moved up against a basket of major currencies, amid concerns about falling corporate earnings, global economic slowdown and geopolitical tensions.
Stock prices moved up Monday morning, but retreated and gave up some gains subsequently amid cautious moves by investors. News about IBM Corp. agreeing to acquire Linus software distributor Red Hat for $33 billion in cash lifted sentiment early on, but buying interest turned subdued as the session progressed on Wall Street.
The dollar index, which had climbed to 96.86 on Friday, its highest since mid August, before paring some gains, rose to 96,70 this morning, and was later moving around 96.65, up by about 0.3% from previous close.
Gold futures for December ended down $8.20, or 0.7%, at $1,227.60 an ounce, the lowest settlement in a week. On Friday, gold futures ended up $3,40, or 0.3%, at $1,235.80 an ounce.
Silver futures for December were down $0.0258, at $14.442 an ounce a little before the closing bell.
Copper futures for December were lower by $0.0005, at $2.7405 per pound.
In economic news, data released by the U.S. Commerce Department showed personal income rose by slightly less than expected in the month of September, edging up by just 0.2%, after climbing by an upwardly revised 0.4% a month earlier. Economists had expected income to rise by 0.3%.
Meanwhile, personal spending was up 0.4% in September, after increasing by an upwardly revised 0.5% in August.
A reading on inflation said to be preferred by the Federal Reserve showed the annual rate of core consumer price growth held at 2% for the fifth straight month.