Investing.com - Gold drifted lower in Asia on Monday ahead of manufacturing PMIs from China, with copper also down from ahead of the data from the world's top importer.
In China, the semi-official manufacturing PMI published by the National Bureau of Statistics (NBS) and the China
Federation of Logistics and Purchasing for July is expected to hit bang-on 50, the same as last month. The CFLP
non-manufacturing PMI is also due, with last month's level at 53.7.
Later, the Caixin manufacturing PMI is due with a reading of 48.7 expected for July, which was up a tad from
48.6 the previous month.
Gold for December delivery on the Comex division of the New York Mercantile Exchange fell 0.14% to $1,355.65 a troy ounce.
Also on the Comex, silver futures for September delivery rose 0.27% to $20.402 a troy ounce.
Elsewhere in metals trading, copper for September delivery dropped 0.31% to $2.222 a pound.
In the coming week, the U.S. reports nonfarm payrolls data and ISM data on both manufacturing and service sector activity. As well, Thursday’s rate announcement from the Bank of England will be in focus, amid mountings expectations the central bank will step up monetary stimulus to counteract the negative economic shock from the Brexit vote.
Last week, gold prices rallied sharply on Friday, ending the session close to a three-week high after data showed that the U.S. economy grew at a slower pace than expected in the second quarter, prompting market players to roll back expectations of a rate hike from the Federal Reserve.
The advance read on second quarter GDP showed a 1.2% annualized growth rate, well below expectations for 2.6%, the Commerce Department said on Friday. First quarter GDP was revised lower to 0.8% from 1.1%.
The disappointing data lessened the threat of an early interest rate rise from the Federal Reserve. Fed funds futures priced in just a 12% chance of a rate hike by September by late Friday. December odds were at 33%, down from 43% a day earlier and compared to 53% at the start of the week.
The Fed left interest rates unchanged on Wednesday and said near-term risks to the U.S. economic outlook had diminished. However, the central bank stopped short of signaling that a further increase in U.S. interest rates is on the cards for later this year.
Gold is sensitive to moves in U.S. rates. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.