Investing.com - Gold prices inched up to hit a two-week high on Monday, as investors continued to close out bets on lower prices.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery rose by as much as 0.7% to hit a daily high of $1,193.60 a troy ounce, the most since October 29.
Prices last traded at $1,188.00 an ounce during European morning hours, up $2.40, or 0.2%.
Gold rallied $24.10, or 2.07%, on Friday to settle at $1,185.60 an ounce.
Futures were likely to find support at $1,146.00, the low from November 14, and resistance at $1,202.40, the high from October 31.
Investors looked ahead to key U.S. economic data later in the day for further indications on the strength of the economy and the future course of monetary policy.
The U.S. was to release a report on manufacturing activity in the New York region, as well as data on industrial production.
Despite recent gains, gold prices are likely to remain vulnerable in the near-term amid indications a strengthening U.S. economic recovery will force the Federal Reserve to start raising interest rates sooner and faster than previously thought.
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.
Also on the Comex, silver futures for December delivery shed 15.1 cents, or 0.93%, to trade at $16.16 a troy ounce. Prices soared 69.3 cents, or 4.44%, on Friday to settle at $16.31 an ounce.
Elsewhere in metals trading, copper for December delivery declined 1.3 cents, or 0.44%, to trade at $3.033 a pound, as concerns over the global economic outlook were amplified after data showed that Japan unexpectedly slipped into recession.
Japan’s economy contracted by an annualized 1.6% in the third quarter, following a 7.3% decline in the previous quarter. Economists had forecast a 2.3% increase.
Copper is sensitive to the economic growth outlook because of its widespread uses across industries.