Gold flat to weaker in early Asia as investors look to Japan, China data

Investing.com - Gold prices were stable on Monday in Asia ahead of data from Japan and China expected to set the regional tone for trade.

Japan is to release data on core machinery orders expected to show a gain of 3.7% year-on-year for February, while Japan’s central bank is to publish the minutes of its latest policy meeting.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery eased 0.02% to $1,207.00 a troy ounce.

Elsewhere on the Comex, silver futures for May delivery rose 0.07% to $16.450 a troy ounce.

Also in metals trading, copper for May delivery was flat at $2.736 a pound.

China is to release data on the trade balance with exports seen up 12.0% year-on-year in March, imports down 11.7% and a trade balance of a $45.35 billion surplus.

In addition to trade, copper traders are looking ahead to a raft of Chinese economic data in the week ahead, including reports on first quarter gross domestic product, as well as data on industrial production.

The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

Last week, gold prices rose for the first time in three sessions on Friday, amid speculation key U.S. data next week will add to evidence that the economy slowed in the first quarter.

Futures are up more than 5% since hitting a recent low of $1,140.60 on March 17, as indications that the U.S. economy slowed in the first quarter fuelled bets the Federal Reserve will hold off on hiking interest rates until late 2015.

A delay in raising interest rates would be seen as bullish for gold, as it decreases the relative cost of holding on to the metal, which doesn't offer investors any similar guaranteed payout.

In the week ahead, markets will be looking ahead to Tuesday’s report on U.S. retail sales, as well as Friday’s reports on inflation and consumer sentiment, for further indications on the strength of the economy.