Gold steadied near $1,280 an ounce on Monday, after posting its biggest monthly gain in three years, as a shaky outlook for the global economy preserved bullion’s safe-haven draw.
Weekend data showed China’s factory sector shrinking in January for the first time since 2012. This report came shortly after Friday’s U.S. gross domestic product number that marked a sharp slowdown in the fourth quarter.
“Overall there’s a sense that the global economy is not doing well and that has boosted the safe-haven appeal of gold. In the short term, we should see gold stay above $1,250,” said Howie Lee, investment analyst at Phillip Futures.