Investing.com - Gold prices gained on prospects for continued easy monetary poliy in China on trade data that showed a slump in imports, while copper held nearly flat.
China said May exports fell 2.5%, less than the 5% drop seen, while imports dropped 17.6%, much more than the slide of 10.7% expected.
China customs gave the trade surplus as RMB366.8 billion, with a dollar figure set at $59.49 billion, well above the $44.95 billion forecast.
Earlier, Japan revised first quarter GDP up to a pace of 1% quarter-on-quarter from a preliminary 0.6% gain and an expected upward revision to 0.7%.
The revised GDP data showed the economic recovery has gained traction, reaching a 3.9% annual growth rate, and overcoming the drag from last year's sales tax hike and economists expect GDP to mark the third straight growth quarter in April-June, but at a slower pace.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery rose 0.48% $1,174.00 a troy ounce.
Also on the Comex, silver futures for July delivery gained 0.63% to $16.085 a troy ounce.
Elsewhere in metals trading, copper for July delivery was up 0.01% at $2.698 a pound. China is the world's top importer of copper
Last week, gold plunged to the lowest level in almost three months on Friday, as robust U.S. nonfarm payrolls data boosted optimism over the health of the economy and supported the case for a U.S. interest rate hike this year.
The Labor Department reported that the U.S. economy added 280,000 jobs in May, the most since December and far more than the 225,000 forecast by economists.
The unemployment rate ticked up to 5.5% last month from 5.4% in April, while average hourly earnings rose by 0.3%, above expectations for a 0.2% increase.
The robust jobs report added to the view that the U.S. economy was regaining strength after contracting in the first quarter, fuelling speculation that the Federal Reserve could raise rates as early as September.
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.
A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
In the week ahead, investors will be focusing on Thursday's U.S. retail sales report for May, as well as Friday's consumer sentiment data, for fresh indications on the strength of the economy and the timing of a rate increase.
On Monday, in the euro zone, Germany is to release data on industrial production.