On Friday, gold futures reached their lowest level since January amid increasing concerns that higher U.S. interest rates would effect sentiment.
According to Bloomberg generic pricing, bullion for immediate delivery gained and declined more than 0.2 percent, before trading in Singapore was little changed at $1,231.53 an ounce. Gold had seen previous losses, falling to $1,225.67, an eight-month low for the precious metal. For a third consecutive day, the 14-day relative-strength index remained under the level of 30, a sign that prices may recover.
NASDAQ reports that U.S. economic data released on Friday sparked fresh optimism over the condition of the economy and resulted in new forecasts that the Federal Reserve will soon increase rates.
"The dollar will continue to be key and looks set to strengthen further," said Sun Yonggang, a macroeconomic strategist at Everbright Futures Co. in Shanghai. "While U.S. data remains mixed, economies outside the U.S. appear to be slowing, helping the dollar and making gold expensive for holders of other currencies," according to Bloomberg.
The industrial output in China lagged, increasing concerns that bullion demand may drop in the largest user since the economy has been losing momentum.
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