1st LD Writethru: Gold higher on weak U.S. housing data

Gold futures on the COMEX division of the New York Mercantile Exchange bounced back on Monday after a three-session losing streak, as weak U.S. housing data weighed on the dollar.

The most active gold contract for December delivery rose 3.4 U.S. dollars, or 0.29 percent, to settle at 1,166.20 dollars per ounce.

Gold found support as the downbeat housing data put more pressure on the dollar, lifting the appeal for the precious metal.

The U.S. Commerce Department reported that new home sales fell to an annual rate of 468,000 in September to the lowest rate since November last year, much lower than expected.

Analysts note gold and the U.S. dollar typically move in opposite directions, which means a weaker greenback can be a positive for commodities priced in dollars because it makes them cheaper for non-dollar users.

For the week, the U.S. Federal Reserve will start a two-day policy meeting on Tuesday with a policy statement to be released on Wednesday afternoon. The Fed isn't expected to raise the interest rates at the conclusion of this meeting, according to analysts.

Generally, interest rates hike would boost the U.S. dollar, diminishing investment appetite for gold.

Silver for December delivery added 7.8 cents, or 0.49 percent, to close at 15.905 dollars per ounce. Platinum for January delivery fell 4.2 dollars, or 0.42 percent, to close at 997.50 dollars per ounce. Enditem