Gold steadies after hitting-four week high
The shiny metal was little changed on Monday after achieving its fourth consecutive weekly rise last week which prompted some investors to sell the metal to lock in gains.
Spot gold is trading at $1236.77 an ounce after recording a high of $1238.30 and a low of $1234.05.
Gold plummeted in July to a low of $1156.79 an ounce but rebounded in August on a parade of dull data, particularly from the United States.
Although the Fed's chairman announcements last week were confident as he said policy makers will use all the available monetary weapons to prevent the economy from falling into recession again, but this week expectations refer that the released data will show more weakness in the U.S. economy.
Last week, U.S. annualized GDP for the second quarter was revised down to 1.6% from 2.4%, reflecting the slowdown in the economy, while this week labor, manufacturing and household spending data are expected to increase the jittery situation.
Central banks around the world are expected to keep support to their economies through holding or increasing stimulus which may give a boost to gold as a hedge against inflation.
On Friday, gold gained $1.80 or 0.15% to close at $1237.77 an ounce; Gold Price was setin London at $1235.00 per ounce inclining from $1234.50 during the AM fixing. SPDR gold trust, the world's largest exchange-traded fund backed by bullion, added 0.61 metric ton to 1,298.56 on August 27.
In the currency market, the dollar advanced slightly today, yet remains under pressure before the awaited US data this week. The dollar index, which tracks the dollar movements against a basket of major currencies, is currently trading at 82.81 compared with the day's opening at 82.74.
Oil fell where it is currently trading at $74.90 a barrel from Friday's closing at $75.50, despite the rise in Asian shares today.
This week, gold may have direction from physical demand from India, the world's largest gold buyer, where festival season begins this week and ends in November.
Among other precious metals, platinum plummeted to $1532.00 from $1533.50 on Friday, palladium edged down to $502.20 from $504.70, and silver rallied to $19.15 from $19.09, as of 08:05 GMT.