Gold slips on strong US dollar

Gold futures on the COMEX division of the New York Mercantile Exchange fell sharply Monday as the U.S. Dollar Index rose. The most active gold contract for December delivery fell 13 U.S. dollars, or 1.03 percent, to settle at 1,254.3 dollars per ounce.

The ICE U.S. Dollar Index, a measure of the dollar's strength against six rival currencies, reached 84.25 at the end of gold market Monday, up from 83.76 Friday. Gold is traded in dollars and becomes more expensive for buyers who use other currencies.

Analysts say investors are moving to the dollar as the economy recovers and as traders expect U.S. interest rates to rise next year. Some analysts believe that gold lost more than 1 percent Monday, even as U.S. stocks retreated and little bad news came out, indicating that the stronger dollar is keeping investors away from gold and their outlook is not bullish.

There has been little news out of Ukraine as a cease-fire is in place, but the U.S. and United Kingdom are ramping up efforts against the ISIS in Iraq.

Silver for December delivery lost 19.5 cents, or 1.02 percent, to close at 18.961 dollars per ounce. Platinum for October delivery lost 13.5 dollars, or 0.96 percent, to close at 1,397.5 dollars per ounce.