Investing.com - Gold prices rose in Asia on Monday after manufacturing data pointed to steady demand and on possible new sanctions on Russia and with markets in the U.S. and Canada closed for the Labor Day holiday.
Gold for December delivery traded at $1,287.70 a troy ounce, up 0.02%, after ending last week at $1,288.20 a troy ounce on the Comex division of the New York Mercantile Exchange.
Gold futures rose 0.62% last week, but ended the month down 0.51%.
In China, the August CFLP manufacturing PMI came in at 51.1, just a nick below the 51.2 exepected.
The HSBC final manufacturing PMI came in at 50.2, just below the 50.3 expected.
U.S. officials are working closely with the European Union to keep their Russia sanctions programs aligned in timing and severity.
On Saturday, European Union leaders agreed to draw up options within a week for possible new sanctions against Russia, with action to follow quickly unless Moscow takes clear steps to scale back its intervention in Ukraine. Reports have emerged that hundreds of Russian soldiers have entered Ukraine.
European Council President Herman Van Rompuy said the bloc wouldn't set out specific criteria for triggering fresh sanctions but said there was "determination" to ensure Russia paid an appropriate price for heightening tensions.
"I can assure you that everyone is fully aware that we have to act quickly given the escalation on the ground," he said at the end of a summit of European leaders.
In China, we get the August CFLP manufacturing PMI at 0900 (0100 GMT) with 51.2 exepected.
This would be followed by the HSBC final manufacturing PMI at 0945 (0145 GMT) with 50.3 expected, unchanged from the previous month final.
In the week ahead, trading volumes are likely to remain light on Monday, with U.S. markets closed for the Labor Day holiday. Investors will be focusing on Thursday’s outcome of the ECB’s monthly monetary policy meeting, as well as Friday’s closely watched U.S. nonfarm payrolls report.
Monetary policy announcements by central banks in Australia, Japan, Canada and the U.K. will also be awaited.
Last week, gold prices hit $1,297.60 an ounce, their highest level since Aug. 20 on Thursday after Ukraine’s president said Russian troops had entered the conflict in eastern Ukraine to support pro-Russian separatists there.
However, gold retreated from the day’s highs after data showed that U.S. gross domestic product expanded at an annual rate of 4.2% in the second quarter, up from a preliminary estimate of 4% and rebounding from a first quarter contraction.
Reports on Friday showed that U.S. consumer sentiment rebounded to a seven year high in August, with the final reading of the University of Michigan’s consumer confidence index rising to 82.5 from 81.8 in June.
Another report indicated that manufacturing activity in the Chicago region continued to expand in August, pointing to underlying strength in the sector.
The reports offset separate data showing that U.S. consumer spending unexpectedly fell 0.1% in July.
The upbeat U.S. data also fuelled concerns that the deepening recovery could prompt the Federal Reserve to raise rates sooner. Higher interest rates would make gold a less attractive investment than interest-bearing assets such as Treasury bonds.
Silver for September delivery rose 0.05% to $19.502 a troy ounce. Copper for September delivery climbed 0.03% to $3.164 a pound.