Investing.com - Gold prices were lower in thin year-end trading conditions on Monday, amid expectations of further stimulus tapering by the Federal Reserve. On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,204.60 a troy ounce during European morning trade, down 0.77%. Gold prices traded in a range between USD1,202.60 a troy ounce and USD1,215.80 a troy ounce. Futures were likely to find support at USD1,195.70 a troy ounce, the low from December 24 and resistance at USD1,218.30, the high from December 27. The February contract settled 0.14% higher on Friday to end at USD1,214.00 a troy ounce. Meanwhile, silver for March delivery dropped by as much as 2.5% earlier in the session to hit USD19.54 a troy ounce, before coming off the lows to trade at USD19.67, down 1.9%. Trading volumes remained limited as many investors already closed books before the end of the year, reducing liquidity in the market. Market players looked ahead to U.S. data on pending home sales later in the day, to gauge if the U.S. economy will be strong enough to allow the Fed to continue withdrawing support through 2014. Comex gold prices plunged to a six-month low of USD1,186,00 a troy ounce on December 19, as investors liquidated long positions after the Fed announced plans to begin tapering its monthly bond-buying program by USD10 billion in January. Some market participants believe the Fed will likely reduce its bond purchases by USD10 billion in each of its next seven meetings before ending the program in December 2014, amid indications of an improving U.S. economy. Gold is down approximately 28% this year, on track for its first yearly loss in 13 years and the worst since 1981, as solid U.S. economic data underlined expectations the Fed will begin curbing stimulus. Meanwhile, silver prices lost nearly 34% this year. Elsewhere on the Comex, copper futures for March delivery added 0.1% to trade at USD3.389 a pound, holding near a four-month high.

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