Gold futures settled lower on Monday, giving up some of the gains recorded last week, as traders awaited fresh data, and the minutes from the Federal Reserve’s latest policy meeting for more clarity on the central bank’s interest-rate path.
Investors chose riskier assets as sentiment improved following a pledge by Chinese officials to roll out more stimulus measures for the country’s beleaguered property sector
The dollar’s weakness helped limit the yellow metal’s downside.
The dollar index drifted down to 103.38, losing nearly 0.5%, amid speculation the Fed will refrain from raising interest rates over the next several months and then start reducing rates.
Gold futures for December ended down $4.40 at $1,980.30 an ounce.
Silver futures for December ended lower by $0.238 at $23.614 an ounce, while Copper futures for December settled at $3.8140 per pound, gaining $0.0755.
China’s central bank kept its loan prime rate near record lows, as widely expected, and also added liquidity into markets via reverse repos.
In another development, China’s central bank and financial regulators pledged on Friday to ensure financing support for the beleaguered real estate sector.