Gold futures on the COMEX division of the New York Mercantile Exchange declined on Monday, as downbeat economic data from the United States and China weighed on market sentiment.

The most active gold contract for August delivery dropped 8.2 U. S. dollars, or 0.5 percent, to settle at 1,613.9 dollars per ounce.

Gold on Monday reversed course after last week's rally led gold futures to trade once again above the 1,600-dollar level.

However, traders on Monday seemed to be giving gold's 3.7- percent rise last Friday another look, and sold off a fraction of the previous session's gains.

The weak jobs report from the U.S. Department of Labor last week stoked traders' hopes for another round of quantitative easing from the Federal Reserve, a positive factor for gold as the precious metal takes support from possible inflation.

But traders seemed to be weighing the likelihood of a third round of quantitative easing more cautiously after Friday's sharp rally, and gold only traded at a 20-dollar range, said market analysts.

Even a decline in the U.S. dollar and news from the U.S. Department of Commerce that factory goods orders decreased 0.6 percent in April provided little support, as investors seemed to be wanting more time and data before running up gold further.

Silver for July delivery also declined 50.5 cents, or 1.77 percent, to settle at 28.033 dollars per ounce. Platinum for July delivery inched down 5.9 dollars, or 0.4 percent, to settle at 1, 427.7 dollars per ounce.