Daily Gold Update

Source: Marketwatch

New York— Gold futures fell Monday for a fourth straight session, as sluggish investment demand pushed holdings in the biggest gold exchange-traded fund to the lowest level in three months. Investors are also awaiting the conclusion of the Federal Reserve's two-day policy meeting that ends on Wednesday. The Fed is expected to tighten its monetary policy sooner rather than later, a move that could boost the U.S. dollar, reduce inflation worries and pressure gold prices. On the Comex division of the New York Mercantile Exchange, December gold futures, the most active contract, dropped $11.70, or 1.2%, to $947.80 an ounce. The front-month August contract lost $11.20, or 1.2%, to $946.10.

Holdings in the SPDR Gold Trust fell to 1,068.90 metric tons Friday, down 3.97 metric tons from a day ago, according to the latest data from the fund. Holdings have dropped more than 50 metric tons in one month and now stand at the lowest level since May 13. August gold hit a two-month high near $970 an ounce last Tuesday, but has since dropped about $20, or 2.2%. See full story.