Investing.com - Gold prices pulled back from session highs on Monday but remained supported as declines in global equities markets fuelled safe haven demand for the precious metal.
Gold for December delivery was up 0.22% to $1,217.8 on the Comex division of the New York Mercantile Exchange, off highs of $1,223.9.
The U.S. stock market fell in early trade, with the Dow 30 shedding 0.81%.
Market sentiment was hit by jitters over pro-democracy protesters in Hong Kong, while investors were also wary ahead of Friday’s U.S. nonfarm payrolls report after August’s report fell short of expectations.
Gold has traditionally been seen as a safe haven investment during times of political instability.
Gold struggled to build on gains as the dollar remained supported close to four year peaks, amid expectations that the Federal Reserve is growing closer to hiking interest rates.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was last at 85.70, not far from the four year highs of 85.93 struck earlier in the day. The index notched up its eleventh consecutive weekly gain last week.
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.
Data on Monday showed that U.S. consumer spending rose by a larger than forecast 0.5% in August, indicating that the economic recovery is on track. Household incomes rose 0.3%, in line with forecasts.
A separate report showed that sales of previously owned homes fell in August, but remained close to July’s 11-month highs.
Elsewhere in metals trading, Comex silver for December delivery was down 0.34% to $17.478 an ounce, while copper for December delivery added 0.27% to trade at $3.044 a pound.