The price of gold was steady Monday morning even as the euro eased on profit taking after recent smart gains. Traders await cues from this week's economic data and the outcome of FOMC meeting.
Gold for December delivery, the most actively traded contract, edged down $0.30 to $1,622.40 an ounce. Last week, gold gained over 2 percent as euro zone worries after assurances from German Chancellor Angela Merkel and French President Francois Hollande to extend support to the euro at any cost close on the heels of a similar pledge from European Central Bank President Mario Draghi.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved down to 1,248.61 tons from 1,252.53 tons.
Meanwhile, the U.S. dollar was leveling off from its 3-week low versus the euro and ticking higher against sterling. The buck was moving higher versus the Swiss franc, while edging lower against the yen.
In economic news, euro zone economic sentiment deteriorated in July due to lower confidence in all sectors, survey data from the European Commission showed. The economic sentiment index came in at 87.9, down from 89.9 a month ago. The reading was also below expectations of 88.9.
Elsewhere, the Spanish economy contracted 0.4 percent quarter-on-quarter in the second quarter, in line with Bank of Spain estimates, the latest figures from the statistical office INE showed Separately, the statistical office said Spain's harmonized inflation rose to 2.2 percent in July from 1.8 percent in June.
The price of silver was ticking higher and platinum slipped in morning deals.
by RTT Staff Writer
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