NEW YORK/LONDON: Gold prices were little changed on Monday as disappointing Chinese export data helped underpin the market, with bullion investors closely monitoring the latest development in the standoff in Ukraine between Russia and the West.
Earlier in the session, the yellow metal was trading lower, extending Friday's weakness after a strong February US job report.
The market later recouped initial losses as investors turned their focus to a report from China which showed the world's second-largest economy posted an unexpected tumble in export in February.
With diplomacy at a standstill, gold did not respond from the worst standoff between Russia and the West since the Cold War. On Monday, Russia said the United States had spurned an invitation to hold new talks resolving the Ukraine crisis.
"Provided there is no escalation in the Ukraine crisis, there's no urgency for fresh buyers to enter at current price," said Edel Tully, precious metals strategist at UBS.
Tully said that, however, gold's ability to hold above key lows despite strong US job data on Friday suggests gold buyers should hold onto their bullish positions in the longer run.
Spot gold inched down 5 cents to $1,339.80 an ounce by 2:45 p.m. EDT (1845 GMT)
US COMEX gold futures for April delivery settled up $3.30 an ounce at $1,341.50, with trading volume in line with its 30-day average, preliminary Reuters data showed.
Also supporting gold prices were lower US stocks on the soft data out of China and lingering concerns over Russia's claim over part of Ukraine.
Commodities in general sold off after a surprise fall in China's exports, with copper sinking to 8-1/2-month lows, while oil prices also fell.
CHINESE GOLD AT DISCOUNT
Chinese gold prices were trading at a discount of $5-$6 an ounce to spot prices, traders said, in a sign of weak demand. Prices were at a premium of more than $20 at the beginning of the year.
The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings rose 1.5 tonnes on Friday, its first inflow since Feb. 25.
Among institutional investors in gold, hedge fund manager John Paulson's returns soared last month as gold rallied and bets on telecommunications and energy companies paid off.
Among other precious metals, silver was down 0.5 percent at $20.79 an ounce.
Platinum fell 0.2 percent to $1,475.50 an ounce, while palladium was down 0.6 percent at $774 an ounce.
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