· Gold prices eased on Monday as the dollar firmed after a report said China was reluctant to agree to a broad trade deal with Washington, but bullion held a tight range as investors took a wait-and-see approach ahead of U.S.-China talks this week.
· Spot gold was down 0.3 % at $1,499.79 per ounce at 1129 GMT. Prices firmed 0.5% last week on concerns of slowing global growth.
U.S. gold futures slipped 0.5% to $1,505.30 per ounce.
· The United States and China are set to meet for trade negotiations in Washington on Oct. 10-11, although latest news reports suggest Beijing may be looking to restrict the scope of any deal.
· "Gold seems to have run out of steam here, we just need a trigger for the market to move. The fact that the dollar is a tad higher is the reason gold is a bit softer," said Saxo Bank commodity strategist Ole Hansen.
"Gold is holding on to what it knows best and right now it knows the $1,500 level quite well. It's going to be a little bit of a wait-and-see week, with the U.S. Federal Reserve minutes and the trade talks due this week."
· The Fed Open Market Committee's minutes from its September meeting are due on Wednesday.
· The dollar edged up against rivals after four straight days of losses last week, with China's offshore yuan and the euro both pressured.
· A higher U.S. currency makes dollar-denominated gold more expensive for holders of other currencies, which could subdue demand. However, limiting gold's downside, European shares dipped as a fall in German industrial orders underscored concerns about a looming recession in Europe's largest economy.
· Meanwhile, data out of the United States on Friday showed jobs growth slowed in September and wage growth stalled, even as unemployment dropped to a 50-year low. But that did little to change market expectations that the Federal Reserve will likely cut interest rates at its next policy review on Oct. 29-30 to support the economy.
· "Gold continues to get appraised against the U.S. bond yields and what the Federal Reserve is going to do next," said AxiTrader market strategist Stephen Innes in a note.
"So, while price action seems supportive enough to suggest a long bias remains intact, ... market participants likely need further evidence from the Fed Board that they are shifting to an easing bias to push prices significantly higher."
· Elsewhere, platinum was down 0.1% to $877.18, silver dipped 0.6% to $17.45 and palladium fell 0.3% to $1,660.29.
Reference: Kitco
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