Gold down before Fed policy meeting

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Monday as traders weighed data and awaited the latest Federal Reserve meeting which is expected to announce the end of its asset purchase program.

The most active gold contract for December delivery fell 2.5 U. S. dollars, or 0.20 percent, to settle at 1,229.3 dollars per ounce.

Gold futures traded in thin volume Monday ahead of a two-day meeting of the Federal Reserve, which is set to announce the end of its 2008-era bond-buying stimulus program at the conclusion of the meeting Wednesday.

On the economic front, a report released on Monday by the National Association of Realtors showed good news for the U.S. economy, putting pressure on the price of gold as the pending home sales index rose 1.4 percent and 1.2 percent in the South and Northeast, respectively. The house sale figure fell slightly in the Midwest and West.

Additionally, Texas factory activity increased again in October as the production index fell from 17.6 to 13.7, showing an increase in output, according to a report from the Dallas Fed released on Monday.

Silver for December delivery lost 2.1 cents, or 0.12 percent, to close at 17.161 dollars per ounce. Platinum for January delivery gained 3.6 dollars, or 0.29 percent, to close at 1,254.5 dollars per ounce.