Gold down on steady equities

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Monday as U.S. equities gained strength after last week's deep losses.

The most active gold contract for December delivery fell 5.9 U. S. dollars, or 0.46 percent, to settle at 1,288.9 dollars per ounce.

Gold fell as the S&P 500 and Dow Jones Industrial Average both rebounded Monday after Portugal announced a 4.9-billion-euro (6.6 billion U.S. dollars) rescue plan for the country's second largest lender, Banco Espirito Santo, whose shares plummeted last week.

The upheaval surrounding the bank has some investors worried about renewed turmoil for Europe's banking system, which had caused a jump to gold as a safe haven last month.

However, some traders expect gold to be bearish and any price rallies are a cause for selling amid an improving economy.

Silver for September delivery lost 13.8 cents, or 0.68 percent, to close at 20.233 dollars per ounce. Platinum for October delivery gained 3.3 dollars, or 0.23 percent, to close at 1466.6 dollars per ounce.