Gold ends in red for 2nd session in a row

Gold prices ended in the red today, Dec. 5, following the release of data showing a pick-up in economic activity in the US services sector for the 11th month in a row last November.

Bullion for February delivery dropped 0.30%, or $5.90, to finish at $2,036.30 an ounce, after rising to $2,059.60 per ounce in early trading.

Meanwhile, the US dollar index, which measures the performance of the US currency against a basket of six major currencies, advanced 0.35% to 104.07 points at 09:45 pm Makkah time.

Data from the Institute for Supply Management showed that the US Services Purchasing Managers Index (PMI) added 0.90 points to 52.70 points in November, from 51.8 points a month ago, surpassing forecasts for 52.2 points, and in line with the S&P Global poll that indicated sectoral growth.

“The fundamentals themselves are just not there yet to keep the rally going,” said Michael Widmer, Head of Metals Research at Bank of America Merrill Lynch. “The big problem is ETFs where we continue to see a lack of inflows – there is a reluctance to get long gold until the Fed actually cuts rates.”