Gold futures on the COMEX division of the New York Mercantile Exchange closed with a loss of more than two per cent on Monday (Tuesday morning GMT ) , after the November U.S. manufacturing activity rose to its best level in more than two years .
The most active gold contract for February delivery fell 28.5 U.S. dollars , or 2.28 percent , to settle at 1221.9 dollars per ounce . It was the lowest close since July 5 , according to FactSet data that tracks the most active contract , Xinhua reported .
According to market analysts , the U.S. Federal Reserve are increasingly gaining more evidence that central banks may begin to slow down the gas pedal stimulus , which suppresses trade assets " safe haven " , like gold .
Manufacturing in the U.S. unexpectedly accelerated in November at the fastest pace in more than two years , showing factories will be a source of strength for the economy heading into 2014.
Index of the Institute for Supply Management ( ISM ) rose to 57.3 , the highest since April 2011 , from 56.4 the previous month , a report showed on Monday .
Gold futures rose 70 percent from December 2008 to June 2011 as the Fed expands its balance sheet through debt purchases , triggering expectations of accelerating inflation and a weak dollar .
While silver for March delivery fell 74.4 cents , or 3.71 percent , to close at 19.289 dollars per ounce .
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