Gold Drops to Five-Month Low of $1,214.60 an Ounce

The US economy continues to show signs of improvement, making investors concerned about the Federal Reserve tapering its stimulus program soon. New data released Monday showed November manufacturing grew at its fastest pace in more than two years, Bloomberg reported.

The news pulled gold prices down today to the lowest level since July 8. Gold futures for February delivery sank to $1,214.60 an ounce early in the Dec. 3 session, Bloomberg reported. Prices later rose $1.29 to $1,222.90 an ounce.

“People don’t want to own gold when the chatter about tapering is getting louder,” Frank Lesh, a trader at FuturePath trading in Chicago, told Bloomberg.

Spot gold prices were trading at $1,215.60 an ounce today, down $1.21 from the previous session.