WASHINGTON (dpa-AFX) - Gold prices dipped on Monday as U.S. Treasury yields bounced back and investors cheered reports of China interest rate reforms as well as German fiscal stimulus to counter a possible recession.
The dollar index hovered near a two-week high reached on August 16 as investors kept a close eye on Federal Reserve Chairman Jerome Powell's speech later this week for his commentary on interest rates.
Spot gold declined 0.85 percent to $1,509.67 per ounce while U.S. gold futures were down 0.9 percent at $1,510.25 an ounce.
Equities edged higher on improved risk appetite as the 10-year U.S. Treasury yield pulled away from a three-year trough hit last week and the People's Bank of China said it would use market-based reform methods to help lower real lending rates and prop up a slowing economy.
Elsewhere, media reports suggested that Germany's coalition government may be open to running a fiscal deficit to counter a possible recession.
Financial markets also welcomed U.S. President Trump's comments that he had discussed the impact of Washington's tariffs on Chinese goods with Apple chief Tim Cook.
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