Gold Surrenders Gain, Closes Down

Updated from 1:23 p.m. EST

Gold futures reversed ground and ended lower Monday after a modest morning rally petered out.

February-dated bullion contracts closed down $2.30 at $634.10 an ounce on the Comex division of the Nymex. The exchange-traded funds that hold bars of the metal, streetTracks Gold Shares (GLD Quote) and iShares Comex Gold Trust (IAU Quote), were lower by 0.3% and 0.4%, respectively.

"Short-term profit-takers locked in a quick profit," says Jon Nadler, an analyst at Montreal-based bullion dealer Kitco, who noted that the advance ran into heavy resistance at about $640. ...