The gold price swung lower from one-week highs on Monday afternoon while investors grappled with a one-month high in the dollar and news that import duties in India will remain at 10 percent.
Spot gold was last at $1,208.00/1,208.80 per ounce, down $4.40 and just $1 above intraday lows – it peaked at $1,223.40 earlier.
India surprised markets by leaving import duties unchanged in the budget released at the weekend.
“The fact the Indian budget was not bullish for gold per se, in that it would encourage the monetisation of the vast quantities of gold already held in India that could lead to less demand for imports, may have dampened sentiment,” FastMarkets analyst William Adams commented.
Despite soft data out of the US and further easing measures introduced in China earlier this morning, gold failed to hold gains, with the dollar last at a one-month high against the euro at 1.1159.
Personal spending at -0.2 percent and personal income at 0.3 percent both disappointed as did the ISM manufacturing PMI at 52.9 against consensus of 53.4. Offering some respite, though, was the official manufacturing PMI at 55.1 against a forecast 54.3.
In earlier data, the HSBC China final manufacturing PMI at 50.7 was up from January’s 49.7 and was the first improvement since October. The official manufacturing PMI at 49.9 was better than the expected 49.7 but remained just in contractionary territory.
Eurozone figures were largely positive.
Other metals were mixed – silver slipped six cents at $16.48/16.53 per ounce but platinum was up $5 at $1,186/1,191 while palladium was the best performer, climbing $15 to $826/832.
(Editing by Mark Shaw)
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