RTTNews - Gold prices dropped to their lowest level of August on Monday amid a sharp sell-off in commodities as stocks fell. A lower U.S. dollar reduced the metal's hedge appeal.
December-stamped gold futures declined to $934.30 per ounce, down $12.70 for the session, at its lowest close since July 29. Prices hit as low as $931.30 earlier in the week.
The dollar rose to a 19-day high versus the euro and reached a monthly best against the pound. A drop in global stocks sent traders flocking toward lower-yielding currencies. Gold often moves opposite the dollar.
On the economic front, the New York Fed said its general business conditions index rose to 12.1 in August from a negative 0.6 in July, with a positive reading indicating an expansion in the manufacturing sector. Economists had been expecting the index to increase more modestly to 3.0.
More big economic news is on the way tomorrow. Producer price index data for July is due at 8:30 a.m. ET. A decline of 0.2% is forecast, compared to an increase of 1.8% last month.
At the same time, housing starts data will be made public. Starts are expected to rise to 598,000 in July, compared to 582,000 in June.
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