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Gold prices edged down in early trade on Monday as the US dollar held firm near a 13-month high against major peers amid financial crisis in Turkey.
Spot gold slipped 0.1 per cent to $1,209.53 an ounce by 0102 GMT, having last week posted a fifth-straight weekly loss. US gold futures were down about 0.2 per cent at around $1,216.80 an ounce.
The dollar index, which measures the greenback against a basket of currencies, was little changed at 96.393 after climbing to its highest since early July 2017 at 96.505.
The euro was under pressure in Asia on Monday as fears about the exposure of European banks to crisis-hit Turkey sent investors scurrying to safe havens, including the US dollar, Swiss franc and yen.
Economic action plan
Turkey has drafted an economic action plan and will start implementing it on Monday morning to ease investor concerns, Finance Minister Berat Albayrak had said on Sunday, after the lira plunged to a new record low in early Asia Pacific trade.
German Economy Minister Peter Altmaier has sharply criticised US President Donald Trump's tariffs and sanction policies, saying such measures were destroying jobs and growth and that Europe would not bow to US pressure regarding Iran.
China's central bank had said on Friday it would maintain its prudent and neutral monetary policy to ensure ample liquidity and keep the yuan largely stable, as global economic uncertainties increase due partly to trade frictions.
British consumer spending dipped last month and few employers plan to offer bigger pay rises, according to economic surveys on Monday that suggest future growth is likely to remain modest.
Discount sale
Gold was sold at a discount in India for the first time in six weeks on subdued demand as buyers bet that prices could fall still further after hitting near seven-month lows last week.
Hedge funds and money managers raised their net short position in COMEX gold contracts to another record in the week to August 7, US Commodity Futures Trading Commission (CFTC) data showed on Friday.
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