US gold futures slips in consolidation

Gold futures on the COMEX division of the New York Mercantile Exchange slipped Monday in consolidation. The most active gold contract for December delivery dropped 0.3 dollars, or 0.02 percent, to settle at 1,352.2 dollars per ounce. Gold had traded higher most of the day until the last few minutes of trading on Comex. Traders were waiting for a decision by the U.S. Federal Reserve policy makers on whether to taper the central bank's monetary-stimulus program. The Fed will conclude a two-day policy meeting on Wednesday, and the market is expecting the central bank to be patient until economic figures show that the economic recovery can withstand a reduction in stimulus measures. Economic figures released Monday presented a mixed picture of economy. Data released by the National Association of Realtors showed that pending home sales fell 5.6 percent in September to hit the lowest level since December; the Fed reported that the industrial production rose 0.6 percent in September, the biggest monthly gain in seven months. Gold also went weak on a stronger dollar Monday. The dollar index, a gauge of the greenback against a basket of major currencies, traded at 79.309 Monday from 79.220 late Friday. Nevertheless, physical demand for gold from India and China still remained strong. Driven by this, said analysts, gold may test short-term resistance at 1,370 dollars per ounce, and the long-term resistance may stand at 1,390 dollars. Silver for December delivery dropped 10.1 cents, or 0.45 percent, to close at 22.538 dollars per ounce. Platinum for January delivery rose 17.4 dollars, or 1.2 percent, to close at 1, 472.9 dollars per ounce.