Gold futurestraded on the Comex division of the New York Mercantile Exchange were down 0.3% to $1,290.65 by 12:45 AM ET (04:45 GMT).
China’s Caixin/Markit manufacturing purchasing managers’ index (PMI), released on Monday, rose to 50.8 from 49.9 in February. That was the strongest reading in eight months and followed an uptick in the official PMI, which tracks mainly state-owned enterprises.
Global equities traded higher on Monday following the release of the survey, with Chinese stocks surging more than 2.5%. Safe-haven gold, however, moved in the direction opposite to most commodities as investor sentiment picked up.
“Let us not forget that in 2018, market sentiment flip-flopped back and forth daily between ‘risk-on’ and ‘risk-off’ ideology,” Walter Pehowich, executive vice-president at Dillon Gage Metals in Addison, Texas, said.
“Every day we continue to see risk in the headlines, whether geopolitical or economic, anything can happen in a moment that will turn markets around,” added Pehowich, who sees gold duly returning to above $1,300.
Looking ahead, the U.S. March jobs report due on Friday is likely to be in focus. Other data include reports on U.S. retail sales and manufacturing should also receive some attention.
News on the Sino-U.S. trade front and developments with Brexit are being closely followed.
On Monday, the U.K. Parliament rejected all the options to replace Prime Minister Theresa May’s unpopular deal. Chinese Vice Premier Liu He is due to travel to Washington later this week for more trade discussions. High-level officials from both sides, including He, U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer, concluded the latest round of trade talks last week in Beijing.
While May is still trying to get her twice-rejected deal through Parliament, the legal default, for now, will be for the U.K. to leave the European Union in 11 days with no deal.