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Gold Prices Fall as Dollar Strengthens (Update 1)

Updated from 10:15 a.m. EDT with settlement prices

NEW YORK ( TheStreet) -- Gold prices were slipping Monday as the U.S. dollar strengthened against the euro, while investors awaited on eurozone finance ministers to reach a financial aid agreement with Spain in meetings Monday and Tuesday.

Gold for December delivery closed down $5.10 to $1,775.70 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,782.50 and as low as $1,768.20 an ounce, while the spot price fell $7.30, according to Kitco's gold index.

"Continued small selling from Friday, ministers in Europe meet and the euro is easier," George Gero, precious metals strategist, wrote in a note.

Silver prices for December delivery were shedding 56 cents to $34.02 an ounce, while the U.S. dollar index was adding 0.29% to $79.57.

The euro was falling Monday against the dollar to $1.2970, which was lower than the prior day settlement at $1.3036.

Monday marked the second-straight trading session that the yellow metal sold off slightly. A better-than-expected unemployment rate didn't bolster confidence that the Federal Reserve's new mortgage-backed securities program, also known as quantitative easing, would continue to last out through the long term. The Fed said its open-ended program announced last month would continue for as long as needed until the labor market significantly improved and had held its improvements for an extended period of time.

Gold was up last Thursday as European Central Bank President Mario Draghi said the central bank would be ready to buy government bonds when countries such as Greece and Spain meet the conditions to receive help. Investors have waited to see if or when Spain would request financial assistance. Any sort of easing from Europe would have the potential to push up gold prices in the near term.

Gold mining stocks were mixed early Monday. Shares of NovaGold Resources (EGO - Get Report) were dipping 2%, while shares of AngloGold Ashanti (AU - Get Report)were adding 1.1%.

Among other stocks, Kinross Gold (KGC - Get Report) was trading down 1.4%, while Barrick Gold (ABX - Get Report) was losing 1.6%.

Gold ETF SPDR Gold Trust (GLD) was down 0.35%.

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GLD $123.36 1.70%
ABX $18.89 7.60%
AU $16.20 4.60%
EGO $4.18 3.50%
KGC $5.53 7.00%


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