Gold falls as US dollar rebounds

Gold futures on the COMEX division of the New York Mercantile Exchange fell slightly Monday amid a stronger U.S. dollar and weak oil prices.

The most active gold contract for December delivery fell 2.1 U. S. dollars, or 0.18 percent, to settle at 1,183.5 dollars per ounce.

Gold fell as the U.S. dollar strengthened. A report from the New York Fed Bank released Monday showed that business activity continued to expand for New York manufacturers.

According to the report, the headline general business conditions index climbed four points to 10.2, the new orders index rose eleven points to 9.1, and the shipments index advanced eleven points to 11.8. Analysts said the optimism about future business conditions in the U.S. drove the dollar index higher on Monday.

Further compounding gold's fall was the weakening oil price. Crude prices decreased Monday as data showed Japan's economy unexpectedly contracted in the third quarter.

Additionally, hedge funds' holdings of gold dropped 49 percent over the past three weeks, the biggest decline since December, Bloomberg said, adding that assets in Exchange-Trade Funds (ETFs) backed by gold are at their lowest level since 2009.

Silver for December delivery lost 25.7 cents, or 1.58 percent, to close at 16.057 dollars per ounce. Platinum for January delivery lost 11.8 dollars, or 0.97 percent, to close at 1,201.3 dollars per ounce.