Gold settles lower as dollar gains ground

Gold futures tilted lower in Asian trade as the dollar index rose following Chinese data and ahead of US data today. 

As of 04:10 GMT, gold futures fell 0.01% to $1,315.40 an ounce, while the dollar index rose 0.01% to 97.07. 

Earlier Chinese data showed inflation rose 1.7%, while producer prices rose 0.1%. 

In an expected step, President Donald Trump is reportedly considering an extension to the negotiation period with China on trade for another 60 days. 

Beijing and Washington reached a 90-day truce last year to reach an agreement and avoid tariff hikes. 

The current truce is scheduled to end on March 2, with no deal still in sight. 

Chinese President Xi Jinping is set to meet the US delegation tomorrow to discuss a possible trade agreement. 

Now investors await US data, with import prices expected down 0.1%, while the Empire State Manufacturing Index is expected up to 7.1. 

US industrial production is expected up 0.1%, while the capacity utilization rate is estimated up to 78.8%. 

Global Gold Council 

Global Gold Council's recent data showed purchases by global central banks rose to 1967 highs last year at 651.5 tonnes, up 74% from 2017 levels, with highest bidders being China, Poland, and Russia. 

The council estimated global consumption of gold rose to 4,345.1 tonnes last year from 4,159.9 tonnes, while jewels demand steadied at 2,200 tonnes. 

Demand from financial institutions on the other hand tumbled 67% from 2017 levels.