Gold edged down on a Monday as speculators took their profits as prices rallied on thin volumes on Friday to their highest in a month on technical buying. A strong fall in the greenback triggered rapid gains in commodities and options-related buying on Friday.
Iran announced this week that it's made its first oil discovery in the Caspian Sea in more than 100 years. The semiofficial Fars News Agency reports the find, in ultra deep waters, may hold the equivalent of 7% of the country's known national reserves.
The US Institute for Supply Management manufacturing report is in focus, with a pickup in manufacturing activity promising gains for the cycle-sensitive metal. A downside surprise would likely produce the opposite result.
Gold is near six-week highs as it closes in on $1,680 per ounce, while silver prices have surged 15% this year and currently trade near $32. Furthermore, international agreements and sanctions are reminding investors of the significance of precious metals in the global financial system.