US gold keeps dropping on Fed tapering speculation

Gold futures on the COMEX division of the New York Mercantile Exchange dropped Monday to the lowest since Oct. 15, on speculation that the Federal Reserve may soon move to scale down its bond purchase. Adding to Friday's decline, the most active gold contract for December delivery dropped 3.5 U.S. dollars, or 0.27 percent, to settle at 1,281.1 dollars per ounce. A stronger-than-expected October job report triggered market fears that the Fed may soon begin scaling down its bond purchase. Meanwhile, physical gold demand remains weak at this time of the year, as demand in India has subdued. Some market analysts believe that more stronger-than-expected macroeconomic data release may render gold weaker without support from the physical market, while others hold that in face of debt and budget deadlines, the Fed may remain in current course. Silver for December delivery slipped 3.5 cents, or 0.16 percent, to close at 21.282 dollars per ounce. Platinum for January delivery lost 10.5 dollars, or 0.73 percent, to close at 1,432.4 dollars per ounce.