Gold futures log lowest close since mid-July

Gold futures on the COMEX division of the New York Mercantile Exchange recorded their lowest settlement since mid-July Wednesday, pressured by strength in the U.S. dollar amid the latest round of mixed U.S. economic data.

The most active gold contract for December delivery fell 15.5 dollars, or 1.22 percent, to settle at 1,258 dollars per ounce, the lowest since July 10.

According to market analysts, gold's downtrend on the day was mostly due to falling demand for safe haven assets, with risks of political and financial meltdown continuing to ease off.

The latest decline in gold prices came after data showed that U. S. retail sales rose a seasonally adjusted 0.4 percent in October, beating market expectations, while separate data indicated that consumer prices fell 0.1 percent in October, largely due to a decline in energy prices, according to reports.

The minutes of the Federal Open Market Committee, a policy setting arm of the U.S. Federal Reserve, which were released late Wednesday, showed that the Fed decided to continue the 85 billion dollars asset purchase program. But there are officials who were considering to reduce the size of the asset purchases even before an unambiguous further improvement in the labor market outlook was apparent.

Silver for December delivery fell 27.6 cents, or 1.36 percent, to close at 20.058 dollars per ounce.