By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) — Gold futures edged higher in electronic trading Monday, along with most of the metals complex, gaining traction from a weaker U.S. dollar.
Gold for April delivery GCJ3 +0.10% rose $1.00 to $1,667.90 an ounce during Asia trading hours, after having fallen $4.40 Friday on the Comex division of the New York Mercantile Exchange. Read: Gold ends below $1,670, logs minor weekly loss
Strength in the dollar and a rise in U.S. stocks following better-than-expected trade data drew investors away from the precious metal at the end of last week.
U.S. trade data also specifically undermined the appeal of gold, according to metal strategists HSBC. After the data, HSBC estimated that fourth-quarter gross domestic product would be revised from a preliminary 0.1% contraction to a 0.4% rise.
HSBC said the economic recovery could also ease the U.S. budget deficit, a factor it sees as “bullion-negative.”
Still, Monday saw the ICE dollar index DXY -0.08% , which measures the greenback against a basket of six other currencies, dip to 80.180 on Monday, down from 80.234 in late North American trading on Friday, also providing some support for gold.
Commodities priced in dollars, including gold, tend to trade inversely with the dollar, as moves in the U.S. unit can influence the attractiveness of metals to holders of other currencies.
The wider metals complex also saw gains Monday, as March silver SIH3 +0.16% rose 2 cents to $31.46 an ounce, and March palladium PAH3 +0.15% added 80 cents to $752.30 an ounce.
Lagging other metals, March copper HGH3 +0.15% traded flat at $3.76 a pound, while platinum for April delivery PLJ3 +0.26% lost 30 cents to trade at $1,714.40 an ounce.
Sarah Turner is MarketWatch's bureau chief in Sydney. Follow her on Twitter @SarahTurnerMKTW.
