Gold retreats for first session in three, dollar climbs off four-week low

Gold futures fell in American trade as the dollar index rose for the fourth session out of five from multi-week lows, as markets await US GDP data later this week. 

As of 02:15 GMT, gold futures due in December fell 0.305 to $1,225.00 an ounce, while the dollar index rose 0.28% to 95.98 away from four-week lows. 

Chinese data released last week showed the seasonally adjusted reading for third-quarter GDP growth down to 1.6% as expected from 1.8%, and also down to 6.5% y/y from 6.7%, the slowest such pace since the financial crisis. 

The unemployment rate fell to 4.9% from 5% in August, while retail sales rose 9.2% y/y, as industrial production slowed down to 5.8% from 6%. 

The Federal Reserve recently released the minutes of its September 25-26 meeting, at which the Federal Open Market Committee voted to increase interest rates by 25 basis points for the third time this year to just below 2.25% as expected, while carrying on plans to normalize the balance sheet. 

The Fed forecast another rate hike this year, and three more next year, and another in 2020, as the economy blisters ahead. 

Now markets await US GDP data later this week, expected to clock in a slowed down growth rate at 3.3% from 4.2% in the second quarter, while GDP prices are estimated at 2.3%, down from 3.0% in the second quarter. 

Earlier this month, the International Monetary Fund cut its forecasts for global growth for this year and the next for the first time in two years, with US and Chinese economies the most important downgrades alongside the euro zone due to rising trade protectionism. 

Otherwise, Gold holdings at SPDR Gold Trust, the world's largest gold-backed investment fund, fell 2.94 tonnes on Friday to a total of 745.82 tonnes, after prices marked the sixth monthly loss in a row in September, the longest such losing streak since late 1996.