WASHINGTON (dpa-AFX) - Gold futures ended notably lower on Monday, extending losses to a sixth successive session, with traders shunning the safe haven asset despite U.S. stocks plunging sharply after a good start.
The U.S. dollar gained against most major currencies amid optimism the U.S. and China could agree on a trade deal in the foreseeable future, and contributed significantly to the yellow metal's slide.
The dollar index was up by about 0.35% at 96.70, after rising to a high of 96.82, rallying from the day's low of 96.33.
Gold futures for April ended down $11.70, or 0.9%, at $1,287.50 an ounce, falling to a six-week low.
On Friday, gold futures for April declined $16.90, or 1.3%, to $1,299.20.
Silver futures for May ended down $0.151, at $15.105 an ounce, while Copper futures for May settled at $2.9090 per pound, down $0.0230 from previous close.
After opening on a firm note amid rising optimism about U.S.-China trade agreement, equities tumbled on Wall Street, weighed down by disappointing economic data.
According to reports from multiple sources, the U.S. and China are in the final stage of negotiations on a long-term trade deal.
A report from the Wall Street Journal said China is offering to lower tariffs and other restrictions on American products, while the U.S. is considering removing most, if not all, sanctions levied against Chinese products since last year.
It is reported that U.S. President Donald Trump and Chinese President Xi Jinping are planning to meet later this month to finalize the agreement.
On the economic front, a report released by the Commerce Department on Monday unexpectedly showed a pullback in U.S. construction spending in the month of December.
The report said construction spending fell by 0.6% to an annual rate of $1.293 trillion in December after climbing by 0.8% to a rate of $1.301 trillion in November. The drop surprised economists, who had expected spending to edge up by 0.2%.
The unexpected decrease came as spending on private construction slid by 0.6% to an annual rate of $991.2 billion after surging up by 1.3% to a rate of $997.1 billion in November.
The Commerce Department said spending on public construction also dropped by 0.6% to an annual rate of $301.5 billion in December after tumbling by 1% to a rate of $303.5 billion in November.
Meanwhile, the revised data from the University of Michigan revealed consumer sentiment in the U.S. rebounded by much less than initially estimated in the month of February.
The report said the consumer sentiment index for February was downwardly revised to 93.8 from a preliminary reading of 95.5. However, the index is still well above the final January reading of 91.2, but the revised reading came in well below analyst estimates of 95.7.
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