Gold Drops Amid 'Muted' Trading on Last Day of Second Quarter

NEW YORK (TheStreet) -- Gold prices were sliding on Monday as traders closed out positions on the quarter's final trading day.

Gold for August delivery at the COMEX division of the New York Mercantile Exchange was slipping $1.40 to $1,318.60 an ounce. The gold price traded as high as $1,319.20 and as low as $1,311 an ounce, while the spot price was increasing $2.70, or 0.21%.

Gold has gained about 2.6% in the 2014 second quarter. 

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"Today is the last day of the month/quarter and as such may see some book squaring, but on the whole, little in the way of fresh moves," David Govett, head of precious metals at Marex Spectron, wrote in a note to clients. "Business is light and interest is muted."

Volume activity likely will remain low this week as Monday marks first-notice day -- when investors must take physical delivery of a futures contract or roll it forward -- Thursday reveals the June jobs report and the trading week lasts just three-and-a-half days due to U.S. observance of Independence Day.

Silver prices for September delivery were dipping 21 cents to $20.92 an ounce, while the U.S. dollar index was off 0.27% to $79.80.

The most actively traded gold ETF, SPDR Gold Trust (GLD), was adding 0.19% to $126.90 a share.

-- Written by Joe Deaux in New York.

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