Gold retreated from its highest level in three months on Tuesday on some profit taking, amid worries regarding global growth outlook.
The precious metal climbed to a high of $1130.35 an ounce, while currently trading around $1125.63 from the session’s opening at $1128.12.
Data released from China on Monday showed the manufacturing sector recorded its sixth-straight month of contraction, while U.S. manufacturing PMI remained in contraction for a fourth consecutive month.
Asian shares dropped, but the Shanghai Composite Index soared after another wave of cash injection by the People’s Bank of China.
The yellow metal should get some support from physical demand this week, ahead of the Luna New Year that starts on February 7.
The U.S. dollar dropped for a second session in a row to 99.03, according to the dollar index, yet gold failed to take advantage.
The dollar came under pressure after Federal Reserve Vice Chairman Stanley Fischer said on Monday the impact of recent volatility in markets on U.S. growth would shape the Fed’s decision.
Later in the week, eyes will focus on the U.S. jobs report that may signal a job creation pace of 192,000 in January.
Brent crude retreated for a second straight session to trade around $33.60 a barrel, compared to the session’s opening at $34.08.
Gold benefited from haven demand earlier in the session, but faced some selling from investors looking for profit after the recent rally.
