Gold hovers near 2018 lows, dollar inches down

Gold futures tilted higher in American trade away from December 26 lows for the second session as the dollar index fell off December 13 highs, following earlier data from China, the world's largest metals consumer, and the US. 

As of 02:34 GMT, gold futures due on June 15 rose 0.04% to $1,291.40 an ounce from the opening of $1,290.90, while the dollar index inched down 0.10% to 93.58 from the opening of 93.68. 

Earlier Chinese data showed the CB leading index slowed down to 1.5% in April from 1.6% in March. 

From the US, the Richmond Manufacturing Index rose to 16 in May from 3 in April, beating expectations of 9. 

Now markets await the Federal Open Market Committee's minutes for the May meeting, at which policymakers voted to stay overnight interest rates unchanged at below 1.75%. 

Later this week, Federal Reserve Chair Jerome Powell will participate in a panel discussion titled "The future of central banking?" at the Sveriges Riksbank Anniversary Conference, in Stockholm.

Recently, the World Gold Council reported a 7% drop in global demand in the first quarter of 2018 to 973.5 tonnes, the lowest since the first quarter of 2008, as investments fell 27% on the precious metal to 287 tonnes from 383 tonnes in the first quarter of 2017. 

Central banks' gold demand rose 42% to 116.5 tonnes, especially from Russia, while jewelry demand steadied at 487.7 tonnes, as mine supplies grew 1% y/y to 770 thousand tonnes. 

Gold holdings at SPDR Gold Trust, the world's largest gold-backed investment fund, fell 3.24 tonnes on Monday to a total of 852.04 tonnes, the lowest since April 4, after rising 3%, or 23.63 tonnes in 2017, while gold prices rose 13% last year.