Gold prices gave up ground on Monday as the dollar gained steam, denting the precious metal's appeal as a safe haven, while making its greenback-denominated futures more expensive to holders of other currencies. Gold futures last traded at $1,217 an ounce, down six dollars on the day, or half a percentage point, after hitting a multi-week low earlier at $1,210.
The U.S. currency is buoyed by earlier positive data that showed America's GDP growing 1.4% in the fourth quarter of last year, easily besting earlier estimates of a just 1.0% growth, and restoring confidence in the world's largest economy, while fanning expectations of a rate hike soon by the Federal Reserve.
The dollar index last rose to a two-week high at 96.30, up 0.15% on the day, while climbing 0.40% against the yen to trade at 113.55. The euro was last changed at 1.1165, while Britain's struggling pound recovered some of its losses, inching 0.14% higher to hover around 1.4146.
Oil prices extended their gains on hopes of a global deal next month to cut or freeze production, with Brent crude futures rising half a dollar, or 1.19% to hover around $41.52 a barrel, while U.S. West Texas Intermediate (WTI) crude futures added 51 cents, or 1.27% to move around $39.97 a barrel.
Investors wait for an array of U.S. data later today, with personal spending expected to have risen 0.2% m/m in February, decelerating from January's 0.5% growth, but still a brisk pace that bodes well for the first quarter growth,
U.S. personal income on the other hand advanced 0.1% m/m in February, sharply slowing down as well from January's 0.5% growth, which could affect the dollar negatively if it led the Fed to delay hiking interest rates next month.