Investing.com - Gold prices edged lower in Asia on Monday as policymakers in China at the weekend sought to reassure on the economic outlook, though the central bank chief advised caution on overseas borrowing.
Gold for April delivery on the Comex division of the New York Mercantile Exchange ticked down 0.03% to $1,253.90 a troy ounce.
Also on the Comex, silver futures eased 0.13% to $15.790 a troy ounce, while copper futures for May delivery dropped 0.35% at $2.278 a pound. China is the world's top copper importer and second major buyer of gold behind India.
In the week ahead, market players will be turning their attention to Friday’s final reading on U.S. fourth quarter gross domestic product for fresh indications on the strength of the economy.
Reports on U.S. durable goods orders and home sales will also be in focus, as investors attempt to gauge if the world's largest economy is strong enough to withstand further rate hikes in 2016.
Investors will also be paying close attention to a number of speeches from key Fed officials this week, including James Bullard, Dennis Lockhart, Jeffrey Lacker, Charles Evans and Patrick Harker.
Last week, gold prices edged lower on Friday, as a recovery in the U.S. dollar and stronger global equity markets dented the metal’s safe-haven appeal, prompting market players to take profits after a sharp rally the day before.
The Fed scaled back forecasts for how high interest rates will rise this year following the conclusion of its policy meeting on Wednesday, citing the potential impact from weaker global growth and financial market turmoil on the U.S. economy.
Investors and economists dialed back their own rate hike expectations in wake of the Fed’s surprisingly dovish outlook, with traders of interest-rate futures now seeing no rate rise before September. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.
Despite recent losses, prices of the yellow metal are up nearly 16% so far this year as investors seek safe havens in the face of mounting instability in other financial markets and as fears over a China-led global economic slowdown make it tougher for the Fed to raise rates.