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Gold Prices Ease On Firm Dollar, Upbeat China Data

Gold prices slipped into the red on Monday as the dollar firmed up and upbeat factory activity data helped improve investors' appetite for risk.

Spot gold dropped half a percent to $1,456.55 per ounce, while U.S. gold futures were down 0.7 percent at $1,462.65.

The dollar held firm as the U.S. economy heads into the holiday-shopping season on solid ground.

Upbeat factory activity reports from China helped offset investor anxiety over the prospects of a proposed Sino-U.S. trade deal.

China's manufacturing activity expanded at a moderate pace in November, but this was the strongest growth since December 2016, survey data from the IHS Markit showed.

The Caixin manufacturing Purchasing Managers' Index rose slightly to 51.8 from 51.7 in October, signaling an improvement for the fourth consecutive month.

According to official survey, released over the weekend, the manufacturing sector returned to growth in November. The PMI advanced to 50.2 from 49.3 while the non-manufacturing PMI advanced to 54.4 from 52.8.

The latest upturn was partly underpinned by a further rise in new business placed with Chinese manufacturers. Despite easing from October, the rate of new order growth remained solid overall.

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