Gold futures fall to 2-week low

San Francisco (Nov 3)  Gold futures fell to a two-week low Friday as U.S. manufacturing in October increased at a faster pace than forecast, boosting the dollar and enhancing prospects for the Federal Reserve to taper monetary stimulus.

Gold futures for December delivery declined 0.8 percent to settle at $1,313.20 an ounce at 1:49 p.m. on the Comex in New York. Earlier, the price touched $1,305.60, the lowest for a most-active contract since Oct. 17. The metal dropped 2.9 percent in the past week.

This year, gold has tumbled 22 percent, heading for the first annual decline since 2000. Some investors lost faith in the metal as a store of value amid a U.S. equity rally to a record and tame inflation.

Silver futures for delivery in December fell 0.1 percent to $21.837 an ounce. Earlier, the price touched $21.705, the lowest since Oct. 17.