Gold rose slightly on Tuesday yet remains near its lowest level in four months as signs of global recovery dented the metal’s appeal as a refuge.
Data released on Sunday signaled China’s factory activity expanded at the fastest in five months in May, while a U.S. report released yesterday showed the manufacturing sector in the world’s biggest economy remained in expansion last month.
Later in the week, eyes will focus on the awaited non-farm payrolls which may show employers added more than 200,000 jobs for a fourth straight month in May.
In the euro area, the focus this week will be on the ECB’s monetary decision amid expectations the central bank will introduce new measures to stave off the current low inflation.
The recent improvement in economic data has revived investors’ risk appetite at the expense of safe haven assets, led by gold.
Both the S&P 500 and Dow Jones Industrial Average closed near a record high on Monday.
Gold prices plummeted yesterday to record its longest losing streak since November after it dropped for a five straight sessions.
Last week, the metal lost 3.37 percent while declined 3.3 percent in May on expectations the Fed would continue with its stimulus cut plan and may raise interest rates earlier than predicted.
Meanwhile, gold is trading around $1245.40 an ounce after hitting a high of $1247.05 and a low of $1241.62.
The downside collapse was triggered by the breach of critical support at $1280, which represents Daily SMA 20, where over the recent past weeks the trading has been range bounded.
The US dollar slipped from a two-month high versus a basket of major currencies to hover around 80.63, after touching a bottom of 80.72 on Monday.
Crude oil for July delivery traded slightly higher around $102.60 a barrel from the session’s opening of $102.42.