Following the strong upward move seen last Friday, the price of gold gave back some ground during the trading day on Monday.
Gold for February delivery climbed well off its early lows but still ended the day down $3.50 or 0.2 percent at $1,469.20 an ounce.
The price of gold initially came under pressure after jumping nearly $12 an ounce last Friday, with a stronger dollar and better than expected Chinese manufacturing data reducing the appeal of the precious metal.
However, gold prices showed a notable recovery attempt following the release of a report from the Institute for Supply Management showing a continued contraction in U.S. manufacturing activity in the month of November.
The ISM said its purchasing managers index edged down to 48.1 in November from 48.3 in October, with a reading below 50 indicating a contraction in manufacturing activity. Economists had expected the index to inch up to 49.2.
“November was the fourth consecutive month of PMI contraction, at a faster rate compared to the prior month,” said Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee. “Global trade remains the most significant cross-industry issue.”
Traders were also reacting to President Donald Trump announcing plans to reinstate tariffs on metal imports from Brazil and Argentina.
“Brazil and Argentina have been presiding over a massive devaluation of their currencies. which is not good for our farmers,” Trump said in a post on Twitter.
He added, “Therefore, effective immediately, I will restore the Tariffs on all Steel & Aluminum that is shipped into the U.S. from those countries.”
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