Second straight day of loss for gold

Strength in dollar and a rally in equities impact prices

Bullion prices ended lower at Comex on Mionday, 30 January 2015. Gold futures settled lower for a second session on Monday, as strength in the dollar and a rally in equities drew investors away from the precious metals market.

Gold for April delivery shed $15, or 1.3%, to settle at $1,184.80 an ounce on Comex. Prices for the metal fell on Friday following a seven-session streak of gains. During its climbing streak, gold tallied a total gain of 4.9% thanks to weakness in the stock market and uncertainty overseas.

May silver lost 39.5 cents, or 2.3%, to $16.674 an ounce.

U.S. equities on Monday rallied on Monday amid dovish comments from China's central-bank chief. The U.S. dollar also strengthened, luring more investors away from the yellow metal.

Economic data at Wall Street included Personal Income/Spending data and Pending Home Sales. Personal income increased 0.4% in February after increasing an upwardly revised 0.4% (from 0.3%) in January while the consensus expected an increase of 0.3%. The increase was in-line with the 0.4% increase in aggregate earnings that was reported in the February employment report. Spending rose just 0.1% in February after declining 0.2% in January while the consensus expected an increase 0.2% Core PCE Prices rose 0.1%, as expected. Pending home sales for February rose 3.1% while the consensus expected an increase of 0.4%.

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