Gold prices traded higher on Monday as weak PMI data coming out of Europe and the U.S. raised concerns about a deep downturn in major economies.
Spot gold rose 0.4 percent to $1,929.86 per ounce, while U.S. gold futures were up half a percent at $1,939.50.
The dollar was subdued as investors awaited more clues on the Federal Reserve’s upcoming moves in July.
On Friday, Atlanta Fed chief Raphael Bostic said he supports holding the central bank’s target-rate level for the rest of the year.
However, San Francisco president Mary Daly said two more interest-rate hikes this year is a “very reasonable” projection.
Geopolitical tensions remained in focus after a short-lived mutiny in Russia by the Wagner paramilitary group revived concerns over nuclear arsenal security.
U.S. Secretary of State Antony Blinken said the events exposed “real cracks” in Putin’s rule.
“It’s not a good thing to see that a nuclear power like Russia can go into a phase of political instability,” Eu foreign policy chief Josep Borrell told reporters in Luxembourg, adding this was the moment for the EU to continue supporting Ukraine more than ever.
The U.S. economic calendar picks up momentum this week, with investors awaiting reports on durable goods orders, consumer confidence, new home sales and pending home sales for additional clues about the outlook for interest rates.
The Commerce Department is due to release its report on personal income and spending for May, which includes a reading on inflation said to be preferred by the Fed.
Meanwhile, German business sentiment released earlier today pointed to the likelihood of a longer recession.
The headline German IFO Business Climate Index fell to 88.5 in June from 91.5 in May (revised from 91.7) reflecting weakness in the manufacturing sector, according to data from the Ifo Institute. Analysts expected a score of 90.7.
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