Gold declines for first session in four, dollar off two-week lows

Gold futures tilted lower in American trade off early August highs, as the dollar index climbed for the first session in four, following earlier data from China, the world's largest metals consumer, and the US. 

As of 02:45 GMT, gold futures due in December fell 0.35% to $1,223.30 an ounce away from ten-week highs, while the dollar index rose 0.31% to 95.31. 

Earlier Chinese data showed the trade surplus widened to 213 billion yuan, or $30.9 billion, from 180 billion yuan, or $26.1 billion in August, easily beating estimates of $12.3 billion. 

Earlier US data showed import prices rose 0.5%, compared to a 0.4% drop in August, while University of Michigan released the preliminary reading for its consumer sentiment survey, which came at 99 in October, down from 100.1 in September, and missing estimates of 100.4. 

Gold futures surged $30 yesterday on track for second weekly gains, before falling on profit-taking today as the stock markets recover around the globe from recent heavy losses. 

US President Donald Trump renewed his criticism of the Federal Reserve's policy tightening, accusing them and the treasury secretary of making the most problems for America, even over the trade dispute with China. 

In a Pennsylvania rally, Trump said the Federal Reserve has gone "crazy" with its latest rate hikes, while noting that stocks are undergoing a normal correction after a succession of record highs. 

Otherwise, International Monetary Fund head Christine Lagarde expressed her support for China's moves to maintain the flexibility of its exchange rate, while noting the Fed's decisions shouldn't be considered "crazy". 

In another note, US Treasury Secretary Steven Mnuchin said he wasn't surprised by the sharp correction in the stock market, maintaining that the US economy's foundation are very strong despite what recent market volatility would've insinuated.  

On Sunday, the People's Bank of China cut reserve requirements for Chinese banks for the fourth time this year amid attempts to ease policies and bolster spending. 

Otherwise, Gold holdings at SPDR Gold Trust, the world's largest gold-backed investment fund, steadied on Thursday at 738.99 tonnes, the highest since early October, after prices marked the sixth monthly loss in a row in September, the longest such losing streak since late 1996.