Gold steadied on Monday after paring losses as weak US manufacturing data rekindled worries about a slowing economy, while palladium exceeded $1,860 per ounce in its week-long surge to new all-time highs on a supply crunch.
Spot gold was flat at $1,463.96 per ounce by 1:46 p.m. ET (1846 GMT). US gold futures settled 0.2% lower at $1,469.20.
Gold initially fell to a low of $1,453.60 per ounce on a stronger dollar and as better-than-expected manufacturing data from China propped up equities.
However, US stock indices dropped and the dollar slipped on data showing an unexpected drop on construction spending in October as investment in private projects tumbled to a three-year low.
"Market started the day on a risk-on tone, but got caught off guard when the ISM data was a bit weaker-than-expected. We saw equities, yields and the dollar all correct, which has helped gold a bit," said Ryan McKay, a commodity strategist at TD Securities.
World equities began the week on a strong footing after a private business survey showed Chinese factory activity expanded at the quickest pace in almost three years in November.
However, markets reversed course following a report that US President Donald Trump said he would immediately restore tariffs on US steel and aluminium imports from Brazil and Argentina.
Investors favor gold during times of global uncertainty.
Palladium was up 0.6% at $1,852.49 an ounce, after hitting a new high of $1,861.71 earlier in the session. The metal has been breaking records daily since Nov. 25.
"Palladium positioning is slightly counter-intuitive to the price action, implicitly confirming heavy OTC interest from the long side," INTL FCStone analyst Rhona O'Connell said in a note.
Silver shed 0.6% to $16.92 an ounce and platinum edged 0.1% lower to $898.85.
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