Gold Unable to Bounce off Two-Week Lows

Gold extended recent losses on Monday, failing to get back on track after surprisingly strong economic data and tapering speculation last week brought a sour end to an otherwise strong month of October for the precious metal.

In electronic trading, gold for December delivery GCZ3 +0.02%   lost a dime to $1,313.10 an ounce. Silver SIZ3 -0.60%  took a slightly bigger hit, down 10 cents, or 0.4%, to $21.74 an ounce.

Gold futures closed Friday with a nearly 3% loss for the week, hitting their lowest level since mid-October as a rally in the U.S. dollar EURUSD +0.08%  against the euro weighed on prices.

ICICI bank analyst Tadit Kundu said that while October, for the most part, was a strong month for bullion prices, the momentum likely won’t be rekindled as we near the end of the year. “Any further recovery in gold prices is likely to be capped following the less dovish guidance adopted by the Fed in the recent FOMC policy meeting,” he wrote in a note.

In other metals trading action, January platinum PLF4 +0.05%  added $2.60, or 0.2%, to $1,454.50 an ounce, while December palladium PAZ3 +0.35%  tacked on $3.55, or 0.5%, to $741.80 an ounce. December copper HGZ3 -0.55%  barely budged at $3.29 a pound.

Traders will now turn their attention to some key economic gauges later this week, including nonfarm payrolls on Friday and preliminary data on third-quarter economic growth on Thursday.

Source: Marketwatch