Gold Drops As Dollar Reaches Two-Week High Against Euro

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Gold fell below $1,040 an ounce as the dollar continued to bounce back against the euro, reducing the precious metal's hedge value.

December gold moved to $1,035.40, down $7.40 on the session. Prices dropped as low as $1,032.90 after earlier reaching as high as $1,044.30.

The dollar rose to a two-week high against the euro, continuing its rebound away from a 14-month low. The greenback saw slight weakness amid choppy against the pound.

A Conference Board report showed that the consumer confidence index fell to 47.7 in October from a revised 53.4 in September. Economists had been expecting the index to edge up to 53.5 from the 53.1 originally reported for the previous month.

On the economic front, the S&P/Case-Shiller 20-City Composite Home Price fell at an annual rate of 11.3 percent in August compared to a 13.3 percent decrease in July. Economists had been expecting the report to show an 11.9 percent drop in prices.

There's more economic data on the way tomorrow. Durable goods orders data is due at 8:30 a.m. ET. Orders are expected to rise 1% in September after a 2.4% drop in August.

The new home sales report for September is coming at 10 a.m. ET. Sales are expected to rise to 440,000, up from 429,000 in August.

Gold fell more than $13 yesterday amid the dollar's rally. The drop took the metal further off the record $1,072 reached earlier this month.

(Market News Provided by RTTNews)