Gold falls on upbeat data, strong dollar

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Monday as the U.S. dollar gained strength amid new economic data showing an improving U.S. economy.

The most active gold contract for December delivery lost 1.8 U. S. dollars, or 0.15 percent, to settle at 1,169.8 dollars per ounce.

The U.S. dollar index, a measure of the dollar's strength against six major currencies, jumped to the highest level since mid-June 2010 on Monday as the eurozone manufacturing sector remained in a state of near-stagnation in October, along with upbeat economic performance out of the United States.

A much-better-than-expected report from the U.S.-based Institute for Supply Management put pressure on gold as it showed what analysts were calling "outstanding growth" in its composite index. The index was read at 59.0 in October versus 56.6 in September. Analysts note that new orders, the most important reading in the report, rose an unexpectedly good 5.8 points to 65. 8.

But other economic data kept a cap on gold's fall. A report from the U.S.-based Markit showed the composite manufacturing index slowing to 55.9 in October from 57.5 in September. Analysts believe this shows growth slowing and is supportive to gold.

Silver for December delivery gained 9.5 cents, or 0.59 percent, to close at 16.201 dollars per ounce. Platinum for January delivery gained 7.6 dollars, or 0.62 percent, to close at 1,242.8 dollars per ounce.