Investing.com - Gold prices gained in Asia on Monday after data at the weekend showed China's manufacturing sector gaining pace.
On the New York Mercantile Exchange, gold for August delivery traded at $1,248.20 a troy ounce, up 0.18%, after falling to a daily low of $1,242.20 a troy ounce on Friday, the weakest level since February 3, before trimming losses to settle at $1,246.00 by close of trade, down 0.88%, or $11.10.
Gold continued its downward trend as chart signals remained bearish after prices broke below key support close to the $1,277-and-$1,250 levels, triggering fresh sell orders.
Comex gold prices have been under heavy selling pressure in recent weeks as upbeat U.S. economic data underlined the view that the U.S. economy is shaking off the effects of a weather-related slowdown over the winter, bolstering the outlook for the broader economic recovery.
While data released Thursday showed that the U.S. economy contracted at a seasonally adjusted annual rate of 1% in the first quarter, market analysts expects second quarter growth to snap back with a 3.8% gain.
In the week ahead, investors will be looking to Friday’s U.S. nonfarm payrolls report for May for further indications on the strength of the labor market and the need for stimulus from the Federal Reserve.
Copper for July delivery rose 0.10% to $3.137 a pound - helped by the Chiuna PMI data. The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Silver for July delivery rose 0.42% to $18.760 a troy ounce.