Gold prices were steady on Monday, having dipped to a one-month low in the previous session after the U.S. dollar firmed on the Federal Reserve’s plans to gradually keep tightening borrowing costs.
Spot gold was little changed at $1,209.57 per ounce at 0121 GMT. On Friday, prices fell to their lowest since Oct. 11 at $1,206.13 per ounce.
U.S. gold futures were up 0.3 percent at $1,211.7 per ounce.
The dollar index, which measures the greenback against a basket of six major currencies, inched up 0.1 percent. The greenback built on last week’s gains and rose towards a 16-month high.
Asian shares fell on Monday, extending weakness in global equity markets at the end of last week as soft Chinese economic data and falling oil prices rekindled anxiety about the outlook for world growth.
U.S. producer prices rose more than expected in October and at their fastest pace in six years but measures of underlying price pressure cooled, bolstering the view that the U.S. central bank is not facing a resurgence in inflation.
Former British foreign minister Boris Johnson called again on Sunday for Prime Minister Theresa May to change course on Brexit, accusing her of forcing through a deal to keep the country locked in the EU’s customs union in a “total surrender”.
Italy’s economy minister is looking to revise down the budget’s growth forecast for next year to try to reach a deal with the European Commission over fiscal policy, a government source said on Sunday.
China’s factory-gate inflation slowed for the fourth month in October on cooling domestic demand and manufacturing activity, signalling Beijing would likely roll out more growth-boosting measures in the face of trade frictions with the U.S.
Hedge funds and money managers cut their net short position in gold by 8,136 contracts to 37,486 contracts, Commodity Futures Trading Commission (CFTC) said on Friday.
Demand for physical gold gathered steam during a key festival week, shrugging off a recent downtrend going into the traditional busy wedding season, while other major Asian hubs saw limited activity.
Source: Reuters
