Gold prices were narrowly mixed on Monday as the dollar eased on data showing a continued contraction in U.S. manufacturing activity in October.
Spot gold slid 0.2 percent to $1,511.31 per ounce, while U.S. gold futures were up 0.1 percent at $1,513.15 per ounce.
While unexpectedly strong U.S. jobs data helped boost global investors’ appetite for riskier assets, economic activity in the U.S. manufacturing sector contracted for the third month in a row in October, suggesting that business sentiment remains more cautious than optimistic.
Of the 18 manufacturing industries, only five reported growth in October, while 12 industries reported contraction. American manufacturers are still struggling with soft demand and weak exports amid an ongoing trade spat with China.
Germany’s manufacturing sector remained stuck in recession in October, though the final reading came in slightly better than an initial estimate published last month, a survey showed today.
Strong risk appetite dominated Asian and European sessions today as signs of progress in U.S.-China trade talks helped investors shrug off growth worries.
There are some signs of easing tensions as U.S. Commerce Secretary Wilbur Ross told Bloomberg that licenses would be released “very shortly” for U.S. firms to sell components to Huawei Technologies Co.
Ross also said that there was “no natural reason” why a “phase one” trade deal with China couldn’t be reached this month.
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