Gold futures settle at three-week low

Gold futures on the COMEX division of the New York Mercantile Exchange fell Tuesday, settling at their lowest level since Oct. 16 on a stronger U.S. dollar.

The most active gold contract for December delivery fell 6.6 dollars, or 0.50 percent, to settle at 1,308.1 dollars per ounce.

The U.S. dollar index headed higher again Tuesday, gaining ground against the euro after the European Commission lowered its forecast for euro-zone growth, which pressured the gold trading in the day, market analysts say.

Gold slumped more as U.S. data showed service industries grew faster than forecast in October, increasing speculation that the Federal Reserve may start tapering stimulus measures later this year.

The Institute for Supply Management's non-manufacturing index also rose to 55.4 in October from 54.4 in September. A reading above 50 signals expansion, while the index below the figure suggests contraction.

Silver for December delivery fell 6.4 cents, or 0.29 percent, to close at 21.636 dollars per ounce.