Gold prices were trading mixed on Monday, but held near a 2-1/2-month high hit last week after Chinese and Hong Kong shares rallied on hopes for more stimulus.
Spot gold was down 0.18 percent at $1,223.03 an ounce after having touched its highest since July 26 at $1,233.26 on October 15. On the other hand, U.S. gold futures were up 0.19 percent at $1,229.80 an ounce.
While markets elsewhere across Asia ended mixed amid concerns surrounding Brexit, Italy and Saudi Arabia, China’s Shanghai Composite index jumped 4.09 percent to 2,654.88, extending a 2.6 percent rebound on Friday.
The rally came after Chinese President Xi Jinping vowed “unwavering” support for the country’s private sector.
In an open letter published in state media, he said that Beijing would continue to value and protect the country’s private business owners to ensure a “better tomorrow”.
European markets traded mostly higher after Moody’s Investors Service cut Italy’s credit rank by one step to Baa3, but set the outlook for the assessment at “stable”, removing the immediate threat of a downgrade to junk.
The dollar index rose slightly as investors remained focused on the likelihood of further political uncertainty in Europe over Italy’s spending plans.