Gold inched down on Monday after hitting a 5-month high in the previous session, weighed down by a stronger dollar.
Spot gold was down 0.2 percent at $1,251.91 per ounce by 0115 GMT. U.S. gold futures edged down 0.3 percent to $1,253.90. Spot gold hit its highest since Nov. 10 at $1,270.46 on Friday and crossed the 200-day moving average. But, it failed to close above that key resistance level. The dollar index rose 0.1 percent to over 3-week highs of 101.310. U.S. job growth slowed sharply in March amid continued layoffs in the embattled retail sector, but a drop in the unemployment rate to a near 10-year low of 4.5 percent suggested labor market strength remained intact.
The Federal Reserve might in the future avoid raising interest rates at the same time that it begins the process of shrinking its $4.5 trillion bond portfolio, prompting only a “little pause”, New York Fed President William Dudley said on Friday. Top aides to U.S. President Donald Trump differed on Sunday on where U.S. policy on Syria was headed after last week’s attack on a Syrian air base, while U.S. Secretary of State Rex Tillerson warned the strikes were a warning to other nations, including North Korea.
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A U.S. Navy strike group will be moving toward the western Pacific Ocean near the Korean peninsula as a show of force, a U.S. official told Reuters on Saturday, as concerns grow about North Korea’s advancing weapons programme. The Dubai Gold and Commodities Exchange (DGCX) said on Saturday it was considering whether to launch a new spot gold contract designed to be used by retail investors and traders. Argentina mining officials told Barrick Gold Corp it must overhaul environmental and operating processes at its Veladero mine.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.03 percent to 836.49 tonnes on Friday from 836.77 tonnes on Thursday. Hedge funds and money managers upped their net long position in COMEX gold for the third straight week in the week to April 4 and raised it slightly in silver, U.S. Commodity Futures Trading Commission data showed on Friday. China’s gold reserves were unchanged at 59.24 million ounces in March, the country’s central bank said on Friday, extending its hiatus from buying any bullion for the fifth month.
(Reporting by Nallur Sethuraman in Bengaluru; Editing by Joseph Radford)