Gold futures drop to lowest level since July

Gold futures on the COMEX division of the New York Mercantile Exchange settled with a loss of more than 2 percent on Monday, following data showing that U.S. manufacturing conditions in November rose to their best level in more than two years. The most active gold contract for February delivery fell 28.5 dollars, or 2.28 percent, to settle at 1,221.9 dollars per ounce. It was the lowest settlement since July 5, according to FactSet data tracking the most-active contracts. According to market analysts, The U.S. Federal Reserve is getting more and more evidence that it can start slowing the stimulus gas pedal, which pressured the safe-haven assets trading, such as gold. Manufacturing in the U.S. unexpectedly accelerated in November at the fastest pace in more than two years, indicating factories will be a source of strength for the economy heading into 2014. The Institute for Supply Management's index rose to 57.3, the highest since April 2011, from 56.4 a month earlier, report showed Monday. Gold futures rose 70 percent from December 2008 to June 2011 as the Fed expanded its balance sheet through debt purchases, fueling expectations of accelerated inflation and a weaker U.S. dollar. Silver for March delivery fell 74.4 cents, or 3.71 percent, to close at 19.289 dollars per ounce.