COMEX Gold is quoting around $ 1,158 per ounce, up half a percent on the day. MCX Gold February futures ended up 0.4 percent at Rs 27,560 per 10 grams.
Gold traders also eyed the movement in Web-based digital currency Bitcoin. Bitcon extended its record-setting rally in the first trading session of 2017, hitting highs above $ 1000 - its strongest levels in nearly three years. The US dollar index extended its drop from 15 year highs and is currently down 0.28 percent at 102.30 mark.
Meanwhile, China's factory activity and non-manufacturing operating growth slowed in December, survey data compiled by the China Federation of Logistics & Purchasing together with the National Bureau of Statistics showed Sunday.
The official manufacturing PMI fell more-than-expected to 51.4 in December from 51.7 in November. At the same time, the non-manufacturing PMI dropped to 54.5 in December from 54.7 a month ago. A reading above 50 indicates expansion in the sector.
Eurozone final factory PMI rose to 54.9 in December from 53.7 in November. This was the highest score since April 2011 and unchanged from the flash estimate. European stocks reversed early losses to inch higher on the first trading day of the year after final data on factory activity.
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