Investing.com - Gold held mostly falt in Asia on Monday with investors looking ahead to remarks on monetary policies in Japan and the U.S. for direction.
Bank of Japan Governor Haruhiko Kuroda is slated to give a speech to business leaders in Osaka at 1430 local time (0530 GMT)
Later on Monday, New York Federal Reserve President William Dudley and Chicago Fed President Charles Evans are both to speak, at separate events. The U.S. is also to release data on personal income and spending as well as a report on pending home sales.
Gold for December delivery on the Comex division of the New York Mercantile Exchange traded down 0.01% to $1,145.50 a troy ounce, while also on the Comex, silver futures for December delivery eased 0.37% to $15.055 a troy ounce.
Elsewhere in metals trading, copper for December delivery gained 0.62% to $2.2894 a pound. Last week, copper prices plunged 4.38%, the biggest weekly drop since mid-January, as ongoing concerns over the health of China's economy dampened appetite for the red metal.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Last week, gold futures fell from the prior session's one-month peak on Friday, as upbeat U.S. second quarter growth data added to expectations for a rate hike before the end of the year.
The Commerce Department said on Friday that the U.S. economy expanded 3.9% in the April-June quarter, up from an estimate of 3.7% reported last month, as stronger consumer spending and construction activity boosted growth.
The upbeat data eased concerns over the strength of the economy and supported the case for a U.S. interest rate hike this year, sending the greenback broadly higher
Federal Reserve Chair Janet Yellen said after markets closed on Thursday that she expected the central bank to begin raising rates later in 2015, as long as inflation remained stable and the U.S. economy was strong enough to boost employment.
It marked the first time Yellen personally supported a 2015 rate hike since July. Yellen's stance represents a stark contrast from her position last week when the Federal Open Market Committee only disclosed that 13 of 17 of its members were in favor of raising rates this year.
Despite Friday's losses, gold prices rose $8.40, or 0.69%, on the week, the second straight weekly gain, as market players continued to speculate over the timing of a Federal Reserve rate hike.
Gold prices have been well-supported since the Fed decided to leave short-term interest rates unchanged last week, amid concerns over soft inflation and the effects of recent market volatility on the U.S. economy.
The timing of a Fed rate hike has been a constant source of debate in the markets in recent months. The U.S. central bank has two more scheduled policy meetings before the end of the year, in late October and mid-December.
Gold fell to a five-and-a-half year low of $1,072.30 on July 24 amid speculation the Fed will raise interest rates for the first time since 2006 at some point 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 focusing on Friday’s U.S. jobs report for September, which could help to provide additional clarity on the likelihood of a near-term interest rate hike.
Market participants will also be watching Wednesday’s euro zone inflation report amid concerns that the European Central Bank could ramp up its monetary stimulus program.