Investing.com - Copper prices slumped on a downbeat official manufacturing report released by China at the weekend and ahead of a closely watched private survey on Monday expected to confirm a contraction.
In China, the HSBC January manufacturing PMI us due at 0930 local time with a reading of 49.8 expected, the same as December. Japan also reports its manufacturing PMI for January with 52.1 expected.
At the weekend, China said January CFLP manufacturing PMI fell to 49.8 from 50.1 in December, placing it in contraction even as the timing of the Chinese New Year holiday this year relative to last should have boosted the January reading.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery fell 0.29% $1,280.50 a troy ounce.
Also on the Comex, silver futures for March delivery fell 0.56% at $17.158 a troy ounce.
Elsewhere in metals trading, copper for March delivery slumped 1.31% at $2.471 a pound.
Last week, gold rallied more than $20 on Friday, after data showed the U.S. economy grew less than expected in the fourth quarter.
The Commerce Department said in a report that the economy expanded 2.6% in the final three months of 2014, below expectations for a 3.0% gain and slowing sharply from growth of 5.0% in the three months to September.
Despite Friday's strong gains, gold lost $14.80, or 1.11%, on the week, the first weekly decline in a month.
On Thursday, gold plunged to $1,252.10, the lowest level since Jan. 15, after the Federal Reserve upgraded its assessment of the economy and the labor market, leaving it on track to raise rates in the second half of this year.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
In the week ahead, investors will be turning their attention to Friday’s U.S. nonfarm payrolls report for further indications on the strength of the recovery in the labor market.
On Monday, in the euro zone, Spain is to release data on the change in the number of people employed.
The U.K. is to publish its manufacturing index.
In the U.S., the Institute of Supply Management is to release data on manufacturing activity. The country will also produce a report on personal income and spending.