Investing.com - Gold prices fell in Asia on Monday as investors moved away from risk trades on North Korea tensions, but copper staged gains as housing data from China showed countinued gains for prices albeit at a slower pace that the previous month.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange fell 19%, to $1,322,62 a troy ounce. Copper futures on the Comex rose 0.81% to 2.976 a pound
China reported house prices data for August rose 8.3%, compared with a 9.7% increase seen in July.
Last week, gold prices fell as investors shrugged off a rise in geopolitical uncertainty that followed after North Korea launched a missile over Japan on Friday while growing expectations that the Federal Reserve will hike rates later this year kept the precious metal on track for a weekly loss.
A day after data showing inflation rose to its highest in seven months fuelling expectations of a December rate hike, gold prices remained on track to snap three-week winning streak. Losses, however, were limited by weak U.S. economic data.
The Commerce Department said on Friday retail sales dipped 0.2% last month, missing expectations of a 0.1% rise. A duo of reports on manufacturing and consumer sentiment followed the weaker-than-expected retail sales data.
The New York Empire State Manufacturing Survey declined to 24.4 for September from 25.2 previously, although this was significantly above consensus expectations of 19.0.
The consumer sentiment index, a survey of consumers by The University of Michigan, fell to 95.3 in September but handily topped expectations.
According to investing.com’s fed rate monitor tool, more than 50% of traders expect the Fed to hike rates in December.
Gold is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.