On Monday gold swung between small gains and losses, as traders
reassessed their expectations for the timing of the first U.S. rate hike
and as growing fears over Greece's future in the euro zone weighed.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery inched up 40 cents, or 0.03%, to trade at $1,279.60 a troy ounce during European morning hours. Prices remained in a tight range between $1,279.20 and $1,283.90. Futures were likely to find support at $1,252.10, the low from January 29, and resistance at $1,298.60, the high from January 27.
On Friday, gold rallied $23.30, or 1.86%, to settle at $1,279.20 after data showed the U.S. economy grew less than expected in the fourth quarter.
This January, gold prices ended with a gain of $94.20, or 7.96%, as investors sought safety from volatility in global financial markets.
Silver futures for March delivery declined 6.8 cents, or 0.4%, to trade at $17.14 a troy ounce on the Comex. Silver rose 43.5 cents, or 2.59%, to end at $17.20 on Friday. Prices soared $1.47, or 10.31%, in January.
Copper for March delivery declined 0.1 cents, or 0.05%, to trade at $2.494 a pound amid growing concerns over the health of China's economy.
In a Friday report, the Commerce Department said that the economy grew 2.6% in the final three months of 2014, below expectations for a 3.0% gain and slowing sharply from growth of 5.0% in the three months to September.
Later in the day, the U.S. was to produce a report on personal income and spending as investors look for further indications on the strength of the economy. The Institute of Supply Management was also to release data on manufacturing activity.
At the same time, Greece’s new government said it will not cooperate with the International Monetary Fund and the European Union and will not seek an extension to its bailout program, underlining fears over a clash with its international creditors.
Data released earlier showed that the final China HSBC Manufacturing Purchasing Managers' Index ticked down to 49.7 in January from a preliminary reading of 49.8. Analysts had expected the index to remain unchanged.
Over the weekend, government data showed that China's manufacturing purchasing managers' index slipped to a two-year low of 49.8 in January, below expectations for a reading of 50.2 and down from 50.1 in December.
The gauge contracted for the first time since September 2012, further pressuring policymakers to stimulate a faltering economy.
