Tame CPI Slams Gold

In other economic news, the Economic Cycle Research Institute says its Weekly Leading Index jumped 2.8% in the week to Dec. 8, marking the sixth straight increase according to revised data. The indicator rose 1.9% in the prior period.

Such forward-looking measures do augur for future strength in the economy. It's worth noting that if the economy looks too robust, then the Fed may not feel as comfortable about lowering rates early on in the year. That scenario would likely keep the dollar higher and gold lower than they would otherwise be. Gold prices tend to move inversely with those of the U.S. currency.

Back with bullion, technical analysts see the session's dip as part of a repeating year-end trading pattern.

"It's not unusual to see a pullback in December," says Tony Raia, an analyst at Chicago-based futures broker Linn Group, who notes the muted response to the economic data by foreign-exchange traders.

With the closing price now under $622, Raia expects to see continued selling down to $603 in the next two sessions, with buying kicking in at around $600 to likely lend firm support.

Among the miners, Freeport McMoRan Copper & Gold(FCX Quote) was shedding 0.7%. Earlier in the session, Freeport was rallying on speculation that Barrick Gold(ABX Quote) may want to purchase the company.

Elsewhere, shares of Newmont Mining(NEM Quote) were losing 1.5% recently.

In base metals, contracts for March delivery of copper closed down 4.1 cents at $3.0165 a pound on the Comex.

In the energy markets, armed men staged an attack on a Royal Dutch Shell (RDSA Quote) facility in the Niger Delta area, Bloomberg reports. The news did not seem to spark investor concern, as Shell ADRs were recently down 0.4% at $70.93.

Near contracts for light sweet crude were rallying 64 cents at $63.15 a barrel on the Nymex.

Among other majors, shares of BP(BP Quote) were off 0.3%, while those of Hess(HES Quote) were falling 1.5%.