Gold Falls After Dollar Firms On Deal To Fund U.S. Government

Gold fell on Monday after the dollar edged up as U.S. congressional negotiators hammered out a deal on a spending package to keep the federal government funded through September. 

FUNDAMENTALS

*Spot gold dropped 0.3 percent to $1,264.06 per ounce, as of 0236 GMT. 

*Gold, last week, saw its biggest weekly percentage fall since the week of March 10, ending about 1.2 percent lower. 

*U.S. gold futures eased 0.2 percent to $1,265.20 an ounce. 

*The dollar index rose 0.1 percent to 99.118.

*On Sunday, U.S. President Donald Trump increased diplomatic contacts with allies in Asia to secure their cooperation to pressure North Korea on its nuclear bomb and missile programs. 

*Growth in China's manufacturing sector slowed faster than expected in April, an official survey showed on Sunday, as producer price inflation cooled and policymakers' efforts to reduce financial risks in the economy weighed on demand. 

*British Prime Minister Theresa May expects divorce talks with the European Union to be tough, she said on Sunday after EU leaders agreed stiff terms and voiced alarm at illusions in London that may wreck a deal.

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