Gold pared losses on Monday as the dollar and world stock markets turned lower ahead of central bank meetings in the United States and Japan. The world's major economies pledged at a G20 meeting over the weekend, dominated by Britain's vote last month to leave the European Union, to use all policy tools available to boost growth. That lifted both shares and the dollar earlier in the session.
Spot gold was down 0.2 percent at $1,319.63 an ounce by 2:32 p.m. EDT (1832 GMT), while US gold futures for August delivery settled down $3.9, or 0.29 percent, at $1,319.50. Gold eased for a second week last week, by 1.2 percent, after rallying to its highest in more than two years in early July following the Brexit vote, which drove up demand for the metal as a haven from risk.
"It remains to be seen what the long-term impact of Brexit will be, but purely in the short term, there wasn't a meltdown in the UK which could have affected global growth or European figures," Natixis analyst Bernard Dahdah said. "People are going to wait until August to see what these figures show. Even if they're bad, but less so than people expected, we could see prices of gold drop further."
Silver, which fell about 3 percent last week, was down 0.03 percent at $19.60 an ounce. Palladium rose as much as 1.2 percent to a nine-month high at $687.80 an ounce, extending gains after registering its fifth weekly gain last week, rising 5.2 percent. Sharper appetite for risk helped the more industrial precious metal catch up with its peers, which it lagged in the weeks after the Brexit vote. Platinum was up 0.3 pct at $1,080.
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