Gold bounces slightly on weak U.S. stocks

Gold futures on the COMEX division of the New York Mercantile Exchange rose slightly on Monday as U.S. stocks drifted lower following weaker-than-expected U.S. housing data.

The most active gold contract for December delivery gained 1.3 U.S. dollars, or 0.11 percent, to settle at 1,217.9 dollars per ounce.

The U.S. existing homes sales slipped 1.8 percent in August after four consecutive months of gains, the National Association of Realtors said on Monday. The disappointing house data is seen as supportive to gold as it triggered concerns over the growth and boosted demand for haven assets.

Meanwhile, a report released by the Federal Reserve Bank of Chicago showed that its National Activity Index, a measure of the health of the U.S. economy, fell to -0.21 in August from 0.26 in July. Any reading below zero points to below-average growth.

The most active gold contract closed at its lowest settlement price of 2014 Friday, offsetting most of its gains since the end of 2013. Gold shined brightly at the first quarter of 2014, with futures prices jumping by more than 14 percent from the end of 2013 until mid-March.

Silver for December delivery lost 7 cents, or 0.37 percent, to close at 17.774 dollars per ounce. Platinum for October delivery lost 7.1 dollars, or 0.53 percent, to close at 1,330.2 dollars per ounce.