2022.05.1618:03:00UTC+00Gold Futures Settle Modestly Higher As Dollar Retreats

Gold futures pared early losses and edged higher on Monday as the dollar came further off the 2-decade high recorded last week.

Worries about growth after data showed a contraction in China's industrial output, and a report showing an unexpected contraction in New York manufacturing activity in May boosted the demand for the safe-haven metal.

Data from the National Bureau of Statistics showed that China's industrial output contracted 2.9% year-on-year in April, missing expectations for an increase of 0.4% and down from 5% in March.

The dollar index dropped to 104.32 in the European session, and despite recovering to around 104.60 around late morning, drifted down again and was hovering around 104.40 a little while ago, netting a loss of nearly 0.2%.

Gold futures for June ended higher by $5.80 or about 0.3% at $1,814.00 an ounce.

Silver futures for July ended up by $0.550 at $21.551 an ounce, while Copper futures for July settled at $4.1915 per pound, gaining $0.0165.

In U.S. economic news, New York manufacturing activity unexpectedly contracted in the month of May, according to a report released by the Federal Reserve Bank of New York.

The New York Fed said its general business conditions index plunged to a negative 11.6 in May from a positive 24.6 in April. A negative reading indicates a contraction in regional manufacturing activity.

Economists had expected the index to slump to a positive 15.5, which would have still indicated growth in the sector.