Investing.com - Gold prices held weaker in early Asia on Monday with manufacturing surveys ahead globally and China expected to set the pace among them.
The AIG Manufacturing index in Australia for January came in at 51.5 with last month's reading at 51.9. As well, the MI Inflation Gauge is due for a month-on-month estimate.
In China both the semi-official manufacturing PMI for January, which is seen at 49.6 and the Caixin Manufacturing PMI which came is expected at 48 are due. As well, Japan reports its manufacturing PMI, with a 52.4 level seen. The non-manufacturing PMI is due as well in China.
Gold for February delivery on the Comex division of the New York Mercantile Exchange eased 0.10% to $1,116.90 a troy ounce.
Also on the Comex, silver futures for March delivery fell 0.18% to $14.245 a troy ounce, while copper for March was down 0.13% to $2.059 a pound.
In the week ahead, investors will be focusing on Friday’s U.S. nonfarm payrolls report for January to gauge if the world's largest economy is strong enough to withstand further rate hikes in 2016.
Market players will also be looking out for reports on the manufacturing sector due on Monday, amid ongoing concerns over the health of the world's economy.
European Central Bank President Mario Draghi is to testify about the bank’s annual report for 2015 before the European Parliament, in Strasbourg.
Last week, gold prices inched higher on Friday, drawing support from weak U.S. GDP data that raised hopes the Federal Reserve may slow any planned interest rate hikes.
The Commerce Department said Friday that the U.S. economy grew at an annual rate of 0.7% in the fourth quarter, missing expectations for growth of 0.8% and slowing from 2.0% in the preceding quarter.
Gold prices rallied to a three-month peak of $1,128.00 on Wednesday as market players viewed the Federal Reserve’s policy statement as slightly dovish.
As expected, the Fed kept interest rates unchanged at the conclusion of its policy meeting and said it was "closely monitoring" global economic and financial developments.
Traders are anticipating just one more rate hike this year, most likely in July, compared with four according to Fed policymakers' guidance. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.