Gold Ends At $1,265 With Focus On ECB
San Francisco (Sept 2) Gold futures ended plunged to end lower on Tuesday, as the dollar strengthened after some upbeat economic data from the U.S. with manufacturing activity rising better than expected in July, while construction spending also rebounded more than anticipated.
The U.S. dollar made gains as expectations the European Central Bank will announce monetary stimulus later this week contributed to the decline of gold.
Activity in the U.S. manufacturing sector unexpectedly grew at an accelerated rate in the month of August, according to a report released by the Institute for Supply Management on Tuesday, with the index of activity in the sector climbing to a three-year high. Meanwhile, construction spending in the U.S. rebounded more than expected in July, after reporting an unexpected drop in spending in the previous month, a Commerce Department released showed Tuesday.
Geopolitical tensions were also in focus with the European Union and the United States reportedly close to announcing fresh sanctions against Russia for its role in the Ukraine crisis.
Gold for December delivery, the most actively traded contract, plummeted $22.4 or 1.7 percent to close at $1,265.00 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday.