The gold price was lower but stable in early morning London trading on Monday following China’s third interest rate cut in six months.
Spot gold was last at $1,185/1,186 per ounce, down $2.70. Trade has ranged from $1,184.1 to $1190.7 so far.
Over the weekend, the People’s Bank of China cut the one-year lending rate 0.25 percentage points to 5.1 percent. The move came after the country’s imports and exports both fell in April.
“It did little to markets this morning, as the actions have been widely expected,” MKS said in a note.
In other data from China, the country’s CPI disappointed at 1.5 percent from the forecast of 1.6 percent, while the country’s PPI came in as expected at -4.6 percent.
The economic agenda is light today with only the US labour market conditions index due this afternoon. There is also a eurogroup meeting focused on Greece.
In currencies, the dollar index is firmer – it was last at around 95.10, after a low of 93.88 on Wednesday.
“We feel there may well be a pick-up in demand for gold for safe-haven reasons given pullbacks in treasuries/bonds, the dollar and some signs of more jittery equity markets, but overall the precious metals markets seem in no hurry to rally,” William Adams, FastMarkets head of research, said.
In the other metals, silver was last at $16.36/16.41, down seven cents. Platinum at $1,136/1,141 was $4 and palladium at $794/799 fell $3.
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