Gold futures ended flat on Monday, as investors await the U.S. Federal Reserve's monetary policy later this week, while continuing to monitor the escalating violence in Libya, and the uncertainties in Gaza and Ukraine.
Investors await the Federal Reserve's monetary policy announcement later in the week for cues on when the Fed might raise interest rates. Any weakness in global equity markets due to geopolitical concerns also appear to be supporting the yellow metal.
It is almost universally expected the Fed will reduce its quantitative easing program by another $10 billion, dropping the size of the asset purchasing program down to $25 billion per month, on track to be fully wound down in October.
In some disappointing economic news, a report from the National Association of Realtors on Monday showed pending home sales in the U.S. to have pulled back unexpectedly in June, after reporting a sharp jump in the previous month.
Gold for August delivery, the most actively traded contract, ended flat to close at $1,303.30 an ounce on the Comex division of the New York Mercantile Exchange on Monday.
Gold for August delivery scaled an intraday high of $1,309.40 and a low of $1,301.10 an ounce.
On Friday, gold futures ended higher, snapping a three-session losing streak, on weak global equity markets and worries over the Ukraine situation.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, remained unchanged at 801.84 from its previous close on Monday.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 81.00 on Monday, down from its previous close of 81.04 late Friday in North American trade. The dollar scaled a high of 81.05 intraday and a low of 80.98.
The euro traded higher against the dollar at $1.3441 on Monday, as compared to its previous close of $1.3431 late Friday in North American trade. The euro scaled a high of $1.3444 intraday and a low of $1.3428.
In economic news from the U.S., a report from the National Association of Realtors on Monday showed pending home sales index dropped 1.1 percent to 102.7 in June after surging up by 6 percent to 103.8 in May. Economists expected sales to increase by another 0.5 percent.
A pending home sale is one in which a contract is signed but not closed. Normally, it takes four to six weeks to close a contracted sale.
The Fed will be out with its latest rate call on Wednesday, the highlight of a busy week that also includes the July non-farm payrolls report and U.S. GDP figures.
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