Gold edged lower on Monday as global stock markets gained with investors focusing on some upbeat economic readings from mixed Chinese economic data, while a firm dollar further weighed on bullion. Spot gold fell about 0.3% to $1,411.95 per ounce as of 1:43 p.m. EDT (1743 GMT). US gold futures settled 0.1% up at $1,413.50. China's second-quarter annual GDP growth fell to a 27-year low of 6.2%, as expected, but its quarterly growth reading of 1.6% beat forecasts. June reports on industrial production, retail sales and urban investment were above expectations.
"The equity market is looking at the data positively and there is some risk appetite here," said Bart Melek, head of commodity strategies at TD Securities in Toronto. "The gold market is reacting more to bad data than good. The US dollar seems to have found some support which may be weighing on gold," said Tai Wong, head of base and precious metals derivatives trading at BMO. Investors await other data this week, such as US retail sales and industrial production, for clues about the health of the world's largest economy.
The US Federal Reserve releases its "Beige Book" on Wednesday, which markets will watch for comments on how trade tensions have affected the business outlook. The yellow metal gained 1.1% last week on the back of expectations of an interest rate cut by the US central bank, which also weighed on the dollar. Spot gold looks neutral in a narrow range of $1,404-$1,421 per ounce, and an escape could suggest a direction, according to Reuters technical analyst Wang Tao.
Spot palladium rose about 1.2% to $1,563.30 per ounce. Silver added 0.8% to $15.34, after touching a near two-week high of $15.36 earlier this session. Platinum gained about 1.2% to $837.00 per ounce. Earlier in the session it rose to $846.53, its highest in two months.
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