Gold futures prices rebounded of three days losing session on Monday, as equities had a stroke by weak Chinese economic data. But the metal was not too far from a six-week low as traders followed speculate on when the Federal Reserve may raise interest rates in the United States.
On the Comex, gold futures delivery in June hit an intraday peak of $1,184.20 a troy ounce. Spot gold ticked up 0.4 per cent to $1,183.20 an ounce, quoted up from a six-week low of $1,170.20 reached on Friday.
The Asian markets encountered divided on Monday after disappointing news about making China underlined the need for continued policy stimulus in the second largest economy in the world, fueling demand for safe-haven bullion.
The increase in gold was sharp losses last week after the Fed said it saw the recent slowdown in the United States economy as transitional and not a rise in interest rates this year is discarded.
Investors will be monitoring economic data due this week, including non-farm payrolls report on Friday April shall it be known.
The prices of gold ended up Friday’s session at least six weeks, as traders supervise the direction of the dollar, while speculating about the time of a rate hike by the Federal Reserve.
The greenback recovered ground amid signs that the United States economy may be stabilizing after a recent bout of weakness.
The dollar index, which measures the strength of the greenback versus a trade-weighted basket of six major currencies, rose 0.15% to trade at 95.52 early Monday. The index fell to a nine-week low of 94.47 on 30 April.
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