Investing.com - Gold prices gained in early Asia on Monday with the focus on a weak yen and signals from Beijing on measures to boost the economy.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at 1,202.20 a troy ounce, up 0.32%. On Friday they settled at $1,197.70 a troy ounce. Markets in Japan are shut on Monday.
Last week, gold prices rose on news that the People's Bank of China cut its benchmark one-year deposit rate by 25 basis points to 2.75% and trimmed its one-year lending rate by 40 basis points to 5.6%.
The move came in response to recent signs of a slowdown in the world’s second-largest economy.
Gold can benefit from such an environment of easy money because of expectations that ample liquidity would put a damper on the value of paper currencies.
Meanwhile, European Central Bank President Mario Draghi reiterated on Friday that the central bank is ready to expand its stimulus program to raise inflation and inflation expectations as quickly as possible.
Despite Friday's upbeat performance, 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.
In the week ahead, the U.S. is to release a string of economic reports on Wednesday due to Thursday’s Thanksgiving holiday, including a look at unemployment claims and durable goods orders.
Also on the Comex, silver futures for December delivery climbed 0.10% to $16.475.
Elsewhere in metals trading, copper for December delivery gained 0.13% at $3.033 a pound.
Prices rallied to a session high of $3.077 on Friday, before paring gains towards the end of the session, as traders weighed whether a surprise rate cut in China would translate into an increase in demand for the industrial metal.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.