Gold at 1-1/2-month low as resilient U.S. dollar dents bullion appeal

Spot gold fell 0.3% to $1,820.46 per ounce by 0048 GMT

  
The Sicpa Oasis validator system (bullion protect) is pictured on one kilogram bar of gold at Swiss refiner Metalor in Marin near Neuchatel, Switzerland July 5, 2019. Image used for illustrative purpose.

The Sicpa Oasis validator system (bullion protect) is pictured on one kilogram bar of gold at Swiss refiner Metalor in Marin near Neuchatel, Switzerland July 5, 2019. Image used for illustrative purpose.

REUTERS/Denis Balibouse

Gold prices dropped to their lowest in 1-1/2 months on Monday, as a stronger U.S. dollar made bullion expensive for other currency holders, despite expectations of a large COVID-19 relief package in the United States.

FUNDAMENTALS

* Spot gold fell 0.3% to $1,820.46 per ounce by 0048 GMT, having fallen to their lowest since Dec. 2, 2020 at $1,809.90 earlier in the session. U.S. gold futures eased 0.7% to $1,816.80.

* The U.S. dollar .DXY strengthened to its highest in four weeks against rival currencies. 

* U.S. President-elect Joe Biden said on Friday he wants 100 million COVID-19 vaccine shots during his first 100 days in office, a day after unveiling a $1.9 trillion stimulus package proposal to jump-start the economy. 

* U.S. retail sales fell for a third straight month in December, while U.S. producer prices rose moderately, suggesting that an anticipated pick-up in inflation in the coming months will probably not be worrisome. 

* China's economic recovery likely accelerated in the fourth quarter, driven by stronger demand at home and abroad and policy stimulus, which is expected to provide a solid boost into 2021. 

* Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust GLD rose 1.4% to 1,177.63 tonnes on Friday. GOL/ETF

* Speculators reduced their bullish positions in COMEX gold and silver contracts in the week ended Jan. 12, data showed on Friday. 

* Physical gold in top consumer China was sold at a small premium for the first time since early 2020 last week, as demand picked up ahead of the Chinese new year. 

* Silver fell 0.6% to $24.57 an ounce. Platinum rose 0.4% to $1,078.19, while palladium shed 0.2% to $2,377.49.

DATA/EVENTS (GMT) 0200 China Urban Investment (YTD) YY Dec 0200 China Industrial Output YY Dec 0200 China Retail Sales YY Dec 0200 China GDP YY Q4

(Reporting by Sumita Layek in Bengaluru, Editing by Sherry Jacob-Phillips) ((Sumita.Layek@thomsonreuters.com; Within U.S. +1 646 223 8780, Outside U.S. +91 8061822693; Reuters Messaging: Sumita.Layek.thomsonreuters.com@reuters.net))

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