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Gold dips on upbeat dollar, positive China data

Credit: REUTERS/ILYA NAYMUSHIN

Gold prices fell after hitting their highest in more than a week on Monday, as stocks gained on better-than-expected China factory data and the greenback strengthened, despite fresh uncertainty over a U.S.-China trade truce.

Dec 2 (Reuters) - Gold prices fell after hitting their highest in more than a week on Monday, as stocks gained on better-than-expected China factory data and the greenback strengthened, despite fresh uncertainty over a U.S.-China trade truce. FUNDAMENTALS * Spot gold was down 0.3% at $1,461.15 per ounce, as of 0059 GMT. Earlier in the session, prices touched their highest since Nov. 22. * U.S. gold futures dropped 0.4% to $1,467.30. * The dollar rose, while the global shares ticked up as investors clung to hopes of a trade deal. [MKTS/GLOB] [USD/] * Factory activity in China unexpectedly returned to growth in November for the first time in seven months. [nL4N2891KL] * Bullion prices, however, failed to stay afloat despite news website Axios' report that a trade agreement between United States and China was now "stalled because of Hong Kong legislation". [nFWN28A00L] * Beijing's top priority in any "phase one" trade deal with the United States is the removal of existing tariffs on Chinese goods, China's Global Times newspaper reported on Sunday. [nL4N28B01A] * The U.S. government may expand its power to stop more foreign shipments of products with U.S. technology to China's Huawei, amid frustration the company's blacklisting has failed to cut off supplies to the world's largest telecoms equipment maker, two sources said. [nL1N2870OY] * China's central bank governor Yi Gang said in a signed article published on Sunday that Beijing should maintain "normal" monetary policy as long as possible since economic growth is still within a reasonable range and inflation is mild overall. [nL4N28B01V] * Japanese manufacturing activity contracted again in November, with export orders at their weakest in five months due to slowing foreign demand, including from China. [nL4N2891IX] * Russia's VTB bank has granted a loan for up to 470 million euros ($518 million) to a group of gold mining companies in Kazakhstan, it said in a statement on Friday. [nR4N28703D] * Gold was sold at a premium last week in India as a dip in prices prompted purchases of the precious metal. [nL4N2893C4] * India will make hallmarking of gold jewellery and artefacts mandatory from mid-January, a senior government minister said on Friday. [nL4N2893N8] * Silver was unchanged at $16.98 per ounce, platinum shed 0.2% to $898.43, while palladium dipped 0.2% to $1,837.36. DATA/EVENTS (GMT) 0145 China Caixin Mfg PMI Final Nov 0500 India IHS Markit Mfg PMI Nov 0850 France Markit Mfg PMI Nov 0855 Germany Markit/BME Mfg PMI Nov 0900 EU Markit Mfg Final PMI Nov 0930 UK Markit/CIPS Mfg PMI Final Nov 1445 US Markit Mfg PMI Final Nov 1500 US ISM Manufacturing PMI Nov (Reporting by Sumita Layek in Bengaluru, Editing by Sherry Jacob-Phillips) ((Sumita.Layek@thomsonreuters.com; Within U.S. +1 646 223 8780, Outside U.S. +91 8067491638; Reuters Messaging: Sumita.Layek.thomsonreuters.com@reuters.net)) Keywords: GLOBAL PRECIOUS/

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