Investing.com - Gold prices eased on Tuesday in Asia as China reported a larger trade surplus that expected though imports slumped, possibly signalling room to ease monetary policy further.
In China. August exports fell 6.1%, a tad more than the 6% seen and imports slumped 14.3%, compared to an expected 8.2% drop. Data for the trade balance in dollars was not immediately available.
Gold for December delivery on the Comex division of the New York Mercantile Exchange fell 0.05% to $1,120.80 a troy ounce.
Elsewhere in metals trading, copper for December delivery on the Comex eased 0.14% to trade at $2.338 a pound.
Copper prices sank to a six-year low of $2.202 on August 24 as concerns over the health of China's economy and steep declines on Chinese stock markets 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.
Overnight, gold futures inched lower on Monday, as trade volumes were expected to remain light with many investors in the U.S. away for the Labor Day holiday.
On Friday, gold dropped $3.10, or 0.28%, after mixed U.S. payrolls data failed to quell uncertainty over the prospect of a near-term interest rate hike from the Federal Reserve.
The Labor Department reported that the U.S. economy added 173,000 jobs last month, below forecasts for an increase of 220,000 and slowing from gains of 245,000 a month earlier.
But the unemployment rate ticked down to 5.1%, its lowest level since April 2008 from 5.3% in July, while average hourly wages rose by a stronger-than-expected 2.2%.
The jobs report failed to provide much clarity on when the Federal Reserve will decide to raise short term interest rates. The timing of a Fed rate hike has been a constant source of debate in the markets in recent months.
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.