SINGAPORE: Gold inched lower on Monday after posting a third straight week of gains, but the precious metal may get support from worries over the pace of the US economic recovery and China's growth.
Investors on Friday had increased bullish bets on bullion after prices broke through tough resistance at $1,300 an ounce, with weak US manufacturing data and uncertainty over China's economic expansion lifting the metal's safe haven appeal.
Gold eased 0.29 percent $1,321.35 an ounce by 0224 GMT as speculators booked profits from last week's rally, which lifted prices to a 3-1/2 month high at $1,332.10. Gold has gained more than 9 percent so far this year.
"I think $1,335 seems to be capped for the time being," said the chief dealer at Lee Cheong Gold Dealers in Hong Kong, referring to the next resistance level.
"There are small amounts of buying in the physical side, although selling is also not that much. Premiums haven't changed at all," he said.
Premiums for gold bars in Hong Kong were stuck in a wide range of $1.30 to $1.70 an ounce to spot London prices, unchanged from last week.
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