Gold Prices Drop To Test $950

December-stamped gold settled at $952.20 an ounce, down $5.30 on the session. Prices touched as low as $944.30 earlier in the session after hitting as high as $962.10.

The dollar moved slightly lower amid uncertain trading against the euro, giving back some of its recent gains. The buck also weakened against the British pound. Gold usually moves opposite the dollar because of the precious metal's hedge appeal.

Crude oil plunged to $69.96 per barrel, down $2.78 on the sessions. Oil had hit as high as $75 a barrel last week.

In economic news, the ISM - Chicago said its index of manufacturing activity rose to 50.0 in August from 43.4 in July. Economists had been expecting a more modest increase to a reading of 48.0.

Things start to heat up tomorrow with some more big reports on the schedule. Construction spending data is due at 10 a.m. ET. Economists expect spending to fall 0.2% in the month of July, compared to a 0.3% increase in June.

The Institute of Supply Management manufacturing index is also due at 10 a.m. A reading of 50.2 is forecast for August, compared to a 48.9 in July.

At the same time, pending home sales index is expected to rise 1.5% in July, compared to 3.6% in June.

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