Forexpros – Gold prices fell in Asian trading on Monday as investors sold the metal for nicely priced dollar positions that dropped last week on soft Chinese growth data and weak U.S. consumer sentiment figures.
Gold and the U.S. dollar often trade inversely from one another.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded down 0.19% at USD1,589.05 a troy ounce, up from a session low of USD1,588.55 and down from a high of USD1,590.75 a troy ounce early during the session.
Gold futures were likely to test support at USD1,567.15 a troy ounce, the low from July 13, and resistance at USD1,596.45, the high from July 13.
Profit-taking sent the metal falling early Monday.
Last week, the metal rose after China reported its second-quarter gross domestic product growth rates came in line with expectations at 7.6%.
The growth was the lowest in three years and sparked talk that China is planning to loosen monetary policy to jolt its economy, which bolstered the precious metal.
Gold saw continued demand on Monday due to weak consumer sentiment figures in the U.S., which prompted talk the Federal Reserve may roll out a round of quantitative easing, which are asset purchases from banks that pump liquidity into the economy, weakening the dollar in the process.
In the U.S., the Thomson Reuters/University of Michigan’s preliminary reading on the overall index on consumer sentiment fell to 72.0 in July from 73.2 in June.
Analysts were expecting a 73.4 reading.
Elsewhere on the Comex, silver for September delivery was down 0.12% and trading at USD27.337 a troy ounce, while copper for September delivery was down 0.17% and trading at USD3.487 a pound.
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