U.S. gold futures gained 0.3% to $1,938.90.
The yuan hit two-week highs against the U.S. dollar after data showed China factory output and retail sales in August beat forecasts, making greenback-priced bullion more attractive for Chinese buyers.
"The outlook for rates to be kept high for longer has been keeping non-yielding gold prices under pressure," said Yeap Jun Rong, a market strategist at IG.
We, therefore, do not view monetary policy as supportive of gold until well into 2024," HSBC said in a note.
"Institutional investors have yet to commit to gold, as net long positions on the CME and ETF holdings indicate."
Persons:
Yuan, Bullion, Jun Rong, Swati Verma, Sherry Jacob, Phillips
Organizations:
U.S, Reuters Graphics, IG, HSBC, CME, Thomson
Locations:
China, U.S, Bengaluru