Gold prices fall in Asia as policy remarks, China data eyed this week

Gold prices dipped in Asia on Monday ahead of a busy week of policymaker remarks and a slew of key Chinese data and with comments from Bank of Japan Governor noted.

Gold for December delivery on the Comex division of the New York Mercantile Exchange fell 0.16% to $1,253.55 a troy ounce.

on the Comex for December delivery edged up 0.03% to $17.447 a troy ounce, while for December delivery rose 0.29% to $2.111 a pound.

This week will see the European Central Bank’s post policy meeting press conference on Thursday amid speculation over whether it will further expand its stimulus program in the face of sluggish growth and inflation. Also on the watchlist are Chinese figures on third quarter GDP, industrial production and retail sales due for release on Wednesday, with the rate of growth expected to ease again.

On Friday, U.S. Federal Reserve Chair Janet Yellen will give a speech.

On Monday, the euro zone is to publish revised data on inflation. and the U.S. will report industrial production and manufacturing activity in the New York region. Among policymakers, ECB President Mario Draghi will speak at an event in Frankfurt and Fed Vice-Chair Stanley Fischer will speak in New York.

Last week, gold prices fell on Friday as a stronger dollar and heightened expectations for a U.S. rate hike later this year weighed on the precious metal.

The dollar rebounded to almost seven-month highs as solid data on U.S. retail sales and producer prices bolstered expectations for a rate hike by the Fed in the coming months.

The upbeat economic reports came after Wednesday’s minutes of the Fed’s September meeting showed several officials believed it would be appropriate to raise interest rates “relatively soon” if the economy continued to improve.

The U.S. central bank raised rates for the first time in almost a decade in December, but rates have remained on hold since then amid concerns over sluggish inflation.

The Fed’s next meeting is in November, but a rate hike ahead of the presidential election is seen as unlikely.

Investors currently price a 69.5% chance of a rate hike at the Fed’s December meeting; according to federal funds futures tracked Investing.com’s Fed Rate Monitor Tool.

Gold is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced.

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