Investing.com - Gold prices remained lower on Monday, as the U.S. dollar rebounded from recent losses although sentiment on the greenback was still vulnerable.
Comex gold futures fell 0.64% to $1,341.40 a troy ounce by 08:35 a.m. ET (12:35 GMT).
The dollar found some support after Friday’s U.S. GDP data showed that domestic consumption and capital spending remained strong even though the headline figure was weaker than expected due to a rise in imports.
Data on Monday showed that U.S. personal income increased 0.4% in December, beating expectations for a 0.3% rise, while personal spending rose only 0.4%, compared to expectations for a 0.5% gain.
But sentiment on the greenback remained fragile after U.S. Treasury Secretary Steven Mnuchin said last week that a weaker dollar was positive for American trade.
President Donald Trump contradicted Mnuchin's position by defedning the need for a strong currency, but traders fear the White House may use currency policy as a tool to get better trade deals with other countries.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.42% at 89.23, not far from last Thursday's three-year low of 88.25.
Gold is sensitive to moves in the dollar. A stronger dollar makes gold more expensive for holders of foreign currency.
Elsewhere on the Comex, silver futures lost 1.21% to $17.23 a troy ounce.