WASHINGTON (dpa-AFX) - Gold futures settled lower on Monday, losing for the third consecutive session due to profit taking. The dollar's weakness limited the yellow metal's downside.
Investors looked ahead to the monetary policy meeting of the Federal Reserve that gets underway on Tuesday, and some crucial economic data due this week.
The dollar index, which advanced to 107.17 around mid morning after exhibiting weakness in the Asian and European sessions, dropped to 106.76 later on in the day, losing about 0.21%.
Gold futures for December closed down $4.60 or about 0.17% at $2,651.40 an ounce.
Silver futures for December settled at $30.697 an ounce, gaining $0.042 or 0.14%, while Copper futures dropped to $4.1465 per pound, down $0.0025 or 0.06% from previous close.
The New York Fed said its general business conditions index plummeted to 0.2 in December after spiking to 31.2 in November, although a positive reading still indicates growth. Economists had expected the index to tumble to 12.0.
The Federal Reserve is widely expected to cut interest rate by 25 basis points. Traders will pay close attention to the updated policy statement and Fed Chair Jerome Powell's press conference for clues on future interest rates under the Trump administration.
CME Group's FedWatch Tool currently indicates a 97.1% chance the Fed will cut rates by a quarter point next week but an 81% chance the central bank will then leave rates unchanged in late January.
The Bank of Japan's policy announcement is due on Thursday. Markets currently weigh a 25% chance for a rate hike following comments from board member Nakamura that the decision should be data dependent.
The Bank of England, which is scheduled to announce its monetary policy on Thursday, is expected to leave its policy rate unchanged. The People's Bank of China will announce its loan prime rates decision on Friday.
This week's U.S. economic calendar includes preliminary purchasing managers index readings and data on retail sales, industrial production, housing starts and building permits and a second revision to third-quarter GDP.
The report on personal income and spending, which is scheduled to be released on Friday, includes the Fed's preferred readings on consumer price inflation.
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