Gold ends lower on stronger US dollar

Gold futures on the COMEX division of the New York Mercantile Exchange fell Monday, giving up gains in a shortened session as the U.S. dollar turned higher. The most active gold contract for February delivery fell 60 cents, or 0.04 percent, to settle at 1,659.5 dollars per ounce. Trading closed early Monday ahead of the Christmas holiday on Tuesday. The February contract had traded as high as 1,666.50 U.S. dollars but eventually pulled back as the U.S. dollar went higher. Strength in the U.S. currency tends to weaken the appeal of dollar- denominated commodities such as gold, according to market analysts. The dollar index, which measures the greenback's performance against a basket of six other major currencies, moved to 79.662, up from 79.575 in North American action late Friday. Gold rose nearly 1 percent Friday, on bargain hunting and short covering, halting a three-session losing streak. But the contract ended last week with a decline of 2.2 percent. Silver for March delivery fell 30.6 cents, or 1.01 percent, to close at 29.897 dollars per ounce.