FUNDAMENTALS
Spot gold held its ground at $4,454.68 per ounce by 0057 GMT, after hitting its lowest level since August 19 in the previous session.
U.S. gold futures for December delivery rose 0.5% to $4,503.70.
Key U.S. data this week include job openings, the ADP employment report and nonfarm payrolls data that will be scrutinised for clues on labour market health and interest rate outlook.
Traders currently see a 65% chance of a September U.S. rate hike, according to the CME FedWatch Tool.
Gold fell more than 3% on Friday after Federal Reserve Chair Kevin Warsh said the U.S. central bank will “have work to do” if policymakers don’t get the confidence they need that inflation is heading down to 2%.
While gold is considered a hedge against inflation, higher rates typically weigh on the metal by boosting the appeal of yield-bearing assets.U.S. President Donald Trump told reporters in the Oval Office that he has a lot of respect for Warsh and that “he’ll do what he has to do” on interest rates.
Meanwhile, Trump threatened further strikes against Iran on Monday after the first exchange of direct attacks in a month, raising tensions in a conflict that had recently shifted into an economic standoff.
Among other metals, spot silver gained 0.4% at $66.77 per ounce, platinum edged 0.7% higher at $1,802.67, while palladium firmed 0.8% to $1,367.25.
DATA/EVENTS (GMT)
0145 China RatingDog Manufacturing PMI Final August
0600 UK Nationwide house price mm, yy August
0750 France S&P Manufacturing PMI August
0755 Germany S&P Manufacturing PMI August
0800 EU S&P MFG Final PMI August
0830 UK S&P Global Manufacturing PMI August
0900 EU HICP Flash YY August
0900 EU HICP-X, F, E, A, T Flash YY, MM August
0900 EU Unemployment Rate July
1345 US S&P Global Mfg PMI Final August
1400 US ISM Manufacturing PMI August
