Gold inched up on Monday on weak Chinese economic data with fall in Asian shares which supported the gold sentiment.
On Friday, the yellow metal slipped after strong U.S. jobs which rose the expectation that Fed may hike interest rates. The hike in interest rates may lead to hurt demand for gold, in turn pushing dollar higher.
International gold rose to $1,240 an ounce after it fell to $1,228.25 in previous session. While, traders and speculators believe that the rebound in gold is temporary and any positive move on hiking interest rates would dampen gold sentiment.
As per Reuters report, Hedge funds and money managers have reduced their bullish bets on gold and silver futures.
There was no much impact on gold market ahead of Chines New year holiday on Feb 19-20. Typically, Chinese have gold gifting habit during new year time.
In India, at the Multi Commodity Exchange, gold futures for delivery in April was trading higher by Rs 158 or 0.59 per cent, to Rs 26,960 per 10 grams. Click to know the spot gold rates in major cities in India.
Spot gold prices plunged by Rs 410 to trade at over two-week low of Rs 27,790 per 10 grams at the bullion market on Monday, reports PTI.