Gold futures were lower in early trading hours on Monday, with market players looking ahead to fresh data later this week, while keeping an eye on the dollar’s dynamic.
On the Comex division of the New York Mercantile Exchange, gold futures were down 1.03 percent at $1.342.20 a troy ounce as of 06:25 GMT.
The yellow metal settled in red territory on Monday, as the American currency recovered moderately despite news from the political sphere threatened its position against competitors.
The US dollar index, which measures the greenback against six major currencies, was trading 0.34 percent higher at 89.32 by the time of this writing.
The dollar-denominated metal is sensitive to changes in the US currency. A weaker greenback makes the metal more attractive for investors holding foreign currencies.
Trading volumes were below average as markets in the United States and China were closed in observance of the President’s Day and the Lunar New Year respectively.
The greenback was supported by last Friday’s homebuilding report, which exposed a build to more than one-year peak in January, while building permits reached its highest since 2007.
These figures were enough to calm down investors, which have been increasingly worried about the estimated US deficit for 2019, nearly $1 trillion.
Market players remained cautious with the dollar as Special Counsel Robert Mueller charged thirteen Russians and three Russian companies for interfering in the 2016 presidential election.
Traders will be focusing mainly in the European session today, as no economic data is scheduled in the United States. Germany’s producer price index for January is up at 07:00 GMT, followed by ZEW current conditions and economic sentiment for February at 10:00 GMT.
Later on, the United Kingdom will be releasing CBI industrial trends orders by 11:00 GMT.