Investing.com - Gold prices declined for the fifth consecutive session on Monday to hit an 18-week low, as investors continued to sell the precious metal amid a weak technical outlook.
On the Comex division of the New York Mercantile Exchange, gold for August delivery fell to a session low of $1,241.20 a troy ounce, the weakest level since January 31, before trimming losses to last trade at $1,244.40 during European morning hours, down 0.13%, or $1.60.
Gold lost 0.88%, or $11.10 on Friday to end at $1,246.00. Prices were likely to find support at $1,237.50 an ounce, the low from January 30 and resistance at $1,260.60, the high from May 30.
Gold extended losses from last week as prices remained below key support levels, indicating bearish chart signals. Prices lost 3.53%, or $45.70 an ounce last week. For May, gold prices dropped 3.9%, the biggest monthly price decline since November.
The precious metal has been under heavy selling pressure recently as investors bet on strong economic growth in the U.S. during the second quarter.
While data released last week showed that the U.S. economy contracted 1% in the first quarter, market analysts expects second quarter growth to snap back with a 3.8% gain, as the economy shakes off the effects of a weather-related slowdown over the winter.
In the week ahead, investors will be looking to Friday’s U.S. nonfarm payrolls report for May for further indications on the strength of the labor market and the need for stimulus from the Federal Reserve.
Also on the Comex, silver for July delivery inched up 0.43%, or 8.1 cents, to trade at $18.76 a troy ounce.
Elsewhere in metals trading, copper for July delivery rallied 1.19%, or 3.7 cents, to trade at $3.161 a pound as investors cheered an upbeat report on China’s manufacturing sector.
Data released over the weekend showed that China’s official manufacturing purchasing managers’ index rose to a five-month high of 50.8 in May, above expectations for 50.6 and up from 50.4 in April.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
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