Spot gold was steady at $1,313 per ounce at 0059 GMT.
U.S. gold futures were also firm at $1,317 per ounce.
World stocks ended last week in the red amid uncertainty about global economic growth and trade tensions, posting their first weekly drop this year.
· Investors are looking ahead to trade talks this week with a delegation of U.S. officials travelling to China for the next round of negotiations. U.S. President Donald Trump said last week that he had no plans to meet with Chinese President Xi Jinping before a March 1 deadline to achieve a trade deal.
Trump has vowed to increase U.S. tariffs on $200 billion worth of Chinese imports to 25 percent from 10 percent currently if the two sides cannot reach a deal by 12:01 a.m. (0501 GMT) on March 2.
Trade tensions between the two largest economies of the world have rattled financial markets since last year.
· Adding to investor worries was the collapse in talks between U.S. Democrat and Republican lawmakers over the weekend amid a clash over immigrant detention policy, raising fears of another government shutdown.
· The European Commission sharply downgraded euro zone growth this year and next.
· Tighter financial conditions since last September make further interest rate hikes seem much less necessary than just a few months ago, San Francisco Federal Reserve Bank President Mary Daly said on Friday.
· Federal Reserve Chairman Jerome Powell is expected to testify on U.S. monetary policy and the economy before the House Financial Services Committee on Wednesday.
· The dollar index was marginally higher and hovering near more than one-month highs touched in the previous session.
A stronger greenback makes dollar-denominated gold more expensive for holders of other currencies.
· Demand for physical gold in India rose last week as jewelers stocked up for a major exhibition, allowing dealers to cut discounts to the lowest in two months, while the Lunar New Year holiday kept activity subdued in other major Asian hubs.
· Gold has steadied above $1310, after rallying for two days straight on global growth concerns.
The yellow metal printed a low of $1302 on Thursday, before rising to $1314. The bounce was likely triggered by uncertainties around Sino-US trade war and concerns of slowing global economic growth.
Technical Levels
R3: 1335.61, R2: 1325.66, R1: 1320.01
S1: 1304.41, S2: 1294.46, S3: 1288.81
· Wall Street and Main Street both remain bullish in the weekly Kitco News gold survey, in essence considering this week’s pullback as a correction in a market that still is still in an uptrend.
Fifteen market professionals took part in the Wall Street survey. There were 11 votes, or 73%, calling for higher prices. There were two votes each, or 13%, for both lower and sideways.
Meanwhile, 467 respondents took part in an online Main Street poll. A total of 259 voters, or 55%, called for gold to rise. Another 129, or 28%, predicted gold would fall. The remaining 79 voters, or 17%, see a sideways market.
Reference: CNBC, FXStreet, Kitco
Thai
Eng