Gold drops in New York

Gold fell on Monday, surrendering some of the gains made in the previous session, on market expectations that the Federal Reserve may taper its monetary stimulus. Analysts expect the Fed to start cutting its monthly stimulus by $10 billion to $20 billion with an announcement due at the end of a two-day policy meeting of the Fed Open Market Committee (FOMC) next Wednesday.

"Given the unwinding of bearish positions in gold, September's meeting is likely to place downside pressure on gold," said Suki Cooper, precious metals strategist at Barclays Capital. Spot gold was down 0.3 percent at $1,386.36 an ounce by 2:48 pm EDT (1848 GMT). US Comex gold futures for December delivery settled up 20 cents an ounce at $1,386.70, with trading volume at 80,000 lots, less than half of its 30-day average, preliminary Reuters data showed. Among other precious metals, silver fell 0.7 percent to $23.65 an ounce. Platinum was down 0.7 percent at $1,479 an ounce and palladium dropped 2.2 percent to $682.22 an ounce.

Copyright Reuters, 2013