Aug 17, 2009
By Miho Yoshikawa

TOKYO (Reuters) - Gold slipped towards $940 on Monday to extend losses from late last week when lacklustre U.S. consumer confidence data clouded the economic outlook, causing oil to fall and dulling the metal's appeal as an inflation hedge.

The precious metal is now nearing the month's trough of $939.40 marked last week, while its fate remains closely tied in an inverse correlation to the dollar.

"Gold's decline on Friday was seen as pretty negative and the market's just on a bit of a follow-through this morning," said Adrian Koh, an analyst at Phillip Futures in Singapore.

Bullion ended lower on Friday as lacklustre U.S. consumer confidence data cast doubts on a quick economic recovery, pushing oil prices lower and causing inflation worries to ease.

Gold was $943.00 per ounce at 0300 GMT on Monday, down 0.3 percent from New York's notional close of $945.85.

It erased earlier gains which had lifted it as high as

$947.85.

U.S. gold futures for December delivery were $945.0 per ounce, down 0.4 percent.
reuters