2019.03.1806:59:00UTC+00Gold Extends Gains For Second Day As Dollar Dips

Gold prices rose on Monday to extend gains from the previous session and the dollar edged lower, as weak U.S. data released on Friday cemented expectations the Federal Reserve could strike a dovish stance this week.

Spot gold rose 0.2 percent to $1,305.12 per ounce while U.S. gold futures were up 0.15 percent at $1,304.85 an ounce.

U.S. factory production slumped for a second month in February, factory activity in New York state hit nearly a two-year low this month and Japanese exports fell for a third month in February, indicating the global economy is facing major headwinds from the trade war.

Traders looked ahead to the Fed and BoE policy meetings this week for directional cues, though expectations for any shift in policy are low.

On the trade front, investors remained hopeful for a U.S.-China trade deal after Xinhua news agency reported the U.S. and China have made further "concrete progress" on the text of the trade agreement between the two sides.

Elsewhere, British Prime Minister Theresa May has issued a stark warning to lawmakers that if they do not back her Brexit deal before the EU leaders' summit on Thursday, she would seek "a short technical extension" beyond the March 29 date to leave the EU.

The U.K. government might not hold the planned Brexit vote on Tuesday unless it feels it can secure a win that avoids a lengthy delay to pulling out of the EU.