Gold settles lower, dollar off seven-week high

Gold futures tilted lower in Asian trade on profit-taking after marking the best performance yesterday since June 2016, while the dollar index traded mostly flat off August 20 highs. 

That comes after earlier Chinese trade data, the world's biggest metals consumer, and ahead of US inflation data, while markets await the G20 meeting for finance ministers in Bali.

As of 04:31 GMT, gold futures due in December fell 0.34% to $1,223.40 an ounce away from early August highs, while the index barely shed 0.02% to 94.99, marking September 28 lows. 

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. 

Now investors await US imports prices data, expected with a 0.3% monthly increase in September, compared to a 0.6% dip in August, while expected with a 3.1% yearly increase, down from 3.7%. 

The UoM consumer sentiment survey is expected to increase to 100.4 from 100.1 in September. 

Gold prices surged $30 yesterday, putting them on track for second weekly gains as investors shun risks and the stock markets tumble globally. 

US President Donald Trump renewed his criticism of the Federal Reserve's policy tightening, accusing them and the treasury department 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". 

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. 

The IMF cut its forecasts for global growth for this year and the next for the first time in two years, with US and Chinese economies the most important downgrades alongside the euro zone due to rising trade protectionism.