Gold steadied on Monday after data showed Chinese economic growth slowed to its weakest in about 27 years, while gains in equities curbed appetite for bullion as investors latched onto some positive readings from the world's second-biggest economy.
China's second-quarter annual GDP growth fell to a 27-year low of 6.2 per cent as expected, but its quarterly growth reading of 1.6 per cent beat forecasts. June reports on industrial production, retail sales and urban investment were above expectations.
Spot gold had inched 0.1 per cent higher to $1,416.29 per ounce by 1005 GMT, reversing some losses ahead of the data. US gold futures rose 0.4 per cent to $1,418.10.
"Markets expected gold prices to push higher given that Chinese growth was the slowest in almost 30 years. However, if you look at the bigger picture, it is still above the 6 per cent level ... Hence we're seeing this mixed reaction with gold," said Lukman Otunuga, research analyst at FXTM.
China's trading partners and financial markets are closely watching as the Sino-US trade war gets longer and costlier, fuelling worries of a global recession.
World shares rose towards an 18-month high following the data.
"Gold is waiting for a fresh directional catalyst. Today is a slow start for gold, but that doesn't mean it's going to be a slow week," Otunuga added.
Investors await other data this week, such as US retail sales and industrial production, for clues about the health of the world's largest economy. The US Federal Reserve releases its "Beige Book" on Wednesday, which markets will watch for comments on how trade tensions have affected the business outlook.
Gold gained 1.1 per cent last week on the back of strong expectations of an interest rate cut by the US central bank, which also weighed on the dollar.
The outlook for gold remains positive, analysts said, with the metal likely to stay supported on expectations of a Fed rate cut and concerns of a global growth slowdown.
"The overall growth picture still looks weak. With further tensions around (US-China) trade talks and geopolitical concerns in the Middle East, the need for gold as a hedge still remains strong," said Howie Lee, economist at OCBC Bank.
Spot gold looks neutral in a narrow range of $1,404-$1,421 per ounce, and an escape could suggest a direction, Reuters technical analyst Wang Tao said.
Palladium rose 1 per cent to $1,560.60, while silver added 0.8 per cent at $15.34 an ounce. Platinum gained 1.7 per cent to $842.09, marking a one-week high.