Investing.com - Gold prices pushed higher on Monday, recovering from early lows as pro-democracy protests in Hong Kong sent Asian equities lower overnight, bolstering safe haven demand for the precious metal.
Gold for December delivery was up 0.46% to $1,221.00 on the Comex division of the New York Mercantile Exchange, off lows of $1,215.9.
Gold prices were boosted as pro-democracy protesters in Hong Kong clashed with riot police, shutting down the territory's business hub. Shares in Hong Kong fell almost 2% overnight while Asian equities were broadly lower.
Gold has traditionally been seen as a safe haven investment during times of political instability.
Gold’s gains were held in check by continued strength in the dollar.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, touched a four year high of 85.93, and was last up 0.08% to 85.84, after notching up its eleventh consecutive weekly gain last week.
Demand for the dollar continued to be underpinned after data on Friday showed that the U.S. economy grew at an annual rate of 4.6% in the second quarter, the fastest pace in two-and-a-half years.
The upbeat data added to the view that the strengthening economic recovery may prompt the Federal Reserve to raise interest rates sooner.
Expectations for higher interest rates going forward are considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
Investors were looking ahead to economic data from the U.S., with Friday’s nonfarm payrolls report sharply in focus after August’s report fell short of expectations.
The U.S. was to release data on personal income and expenditure later Monday, followed by a report on pending home sales.
Elsewhere in metals trading, Comex silver for December delivery added 0.25% to trade at $17.58 an ounce, while copper for December delivery was down 0.29% to $3.027 a pound.