Investing.com - Gold prices eased in Asia on Monday with markets looking ahead to data signals on the U.S. economy and in China for the outlook on key industrial metal copper.
On the Comex division of the New York Mercantile Exchange, gold for December delivery traded at $1,215.80 a troy ounce, down 0.03%, after hitting on Friday a session low of $1,214.20 a troy ounce on Friday, a level not seen since Jan. 2.
Prices recovered last week to settle at $1,216.60, down $10.30, or 0.84%, for the day. For the week, Comex gold prices lost $14.90, or 1.2%, the third consecutive weekly drop.
Last week, the Federal Reserve cut its monthly bond-buying program by another $10 billion following its two-day policy meeting on September 17, keeping the program on track to finish next month.
While the Fed reiterated that it expects rates to remain on hold for a "considerable time" after its quantitative easing program ends, it also projected a faster pace of rate hikes.
For the end of 2015, the median forecast was 1.375% compared to a June forecast of 1.125%.
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.
Speaking at the central bank’s post-policy meeting press conference, Fed Chair Janet Yellen emphasized that the timing of the first rate hike would be data-dependent.
In the week ahead, investors will be focusing on U.S. data on new and existing home sales, as well as reports on durable goods orders and initial jobless claims.
A recent batch of upbeat U.S. economic data underlined optimism over the strength of the economy and fuelled expectations that the Fed will begin to raise rates sooner than previously thought.
Also on the Comex, silver for December delivery fell 0.06% to $17.800 a troy ounce. Elsewhere in metals trading, copper for December delivery shed 0.12% to 3.084 a pound.
Comex copper prices lost 1.5 cents, or 0.48%, on the week, amid speculation weakening economic growth in China will reduce demand for the industrial metal.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.