Gold futures on the COMEX division of the New York Mercantile Exchange dropped below 1,300 U.S. dollars on Monday as U.S. stocks gained and Ukraine tensions eased.
The most active gold contract for December delivery fell 6.9 U. S. dollars, or 0.53 percent, to settle at 1299.3 dollars per ounce.
With a down note last Friday, gold prices remained on the defensive Monday under pressure from strong U.S. equities and by the U.S. dollar recovery, indicating a risk appetite is improved in the marketplace as geopolitical tensions in Ukraine somewhat ebbed away and U.S. housing market data came out better than expected.
The National Association of Home Builder/Wells Fargo released Monday showed that U.S. Housing Market Index for August came in at 55, up two points from July for the best reading since January.
Traders are awaiting this week's annual Kansas City Federal Reserve meeting on Friday in Jackson Hole, Wyoming, as the annual summit of world central bankers has in the past yielded important U.S. monetary policy speeches and clues to the direction of monetary policy. Federal Reserve Chairwoman Janet Yellen and European Central Bank President Mario Draghi are scheduled to speak this year.
Before the Jackson Hole event comes the Federal Reserve's latest policy meeting minutes due out Wednesday.
Silver for September delivery rose 11 cents, or 0.56 percent, to close at 19.635 dollars per ounce. Platinum for October delivery lost 11 dollars, or 0.75 percent, to close at 1,446.2 dollars per ounce.