Spot gold rose 0.2 percent to $1,299.59 per ounce as of 0354 GMT, after touching its highest since March 28 at $1,303.61 in the previous session.
U.S. gold futures were up 0.1 percent at $1,303.30 an ounce.
· “The U.S. dollar is subdued and data shows that there is continued buying from central banks,” ANZ analyst Daniel Hynes said.
China, the world’s biggest gold consumer, raised its gold reserves by 0.6 percent to 60.62 million ounces by end-March, central bank data showed.
Turkey also raised its gold holdings in March, according to data from the International Monetary Fund.
· The dollar sagged after weak U.S. economic data, making gold cheaper for investors holding other currencies. It posted its biggest daily percentage decline since March 20 in the previous session.
Orders for U.S.-made goods fell modestly in February and the manufacturing sector is slowing amid rising inventories, data showed on Monday.
U.S. nonfarm payrolls data on Friday also signaled a slowdown in wage growth and job cuts in the manufacturing sector even as employment accelerated.
· “Gold’s gains in the last 24 hours were a follow-up on the jobs report from the U.S. on Friday,” said Ilya Spivak, a senior currency strategist at DailyFX.
“Decline in wage inflation takes the pressure off the Fed and lets it remain dovish and delay rate hikes and maybe switch gears, and that’s supportive for gold.”
· Market participants are now awaiting minutes of the Federal Open Market Committee’s March meeting, due on Wednesday, while the European Central Bank meeting on the same day is also on investors’ radar.
“There is an expectation for a dovish-biased statement based on what came out in March. The larger issue is how concerned are our policy makers over the state of global economy,” Spivak said.
· Meanwhile, holdings in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, fell for a sixth straight session to 760.49 tonnes on Monday.
· GOLD TECHNICAL ANALYSIS
Gold prices bounced to retest resistance in the 1303.70-09.12 but the outlines of a choppy Head and Shoulders (H&S) top remain intact. The outer bound of the latest series of lower highs is now at 1313.45, with a daily close above that likely needed to neutralize near-term bearish cues. The next upside threshold is at 1326.30. Alternatively, confirmation of the H&S setup on break below its neckline – now at 1283.41 – sets the stage for a test of trend line support set from August 2018. This is currently at 1256.73.
· Among other precious metals, spot platinum was down 0.1 percent at $904 per ounce, after touching its highest since end-May 2018 in the previous session.
Palladium slipped 0.5 percent to $1,376.07 an ounce, while silver gained 0.1 percent to $15.26 per ounce.
Reference: Reuters, Kitco
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