China may announce 10 new COVID easing steps sources
Silver drops about 4
U.S. services industry activity rises to 56.5 in Nov

Dec 5 Reuters Gold prices beat a sharp retreat on Monday as the dollar rebounded on bets that strong U.S. economic readings may give the Federal Reserve fodder to accelerate rate hikes.

Spot gold dipped 1.6 to 1,769.14 per ounce by 133 p.m. ET 1833 GMT after touching its highest since July 5 at 1,809.91 earlier in the day.

U.S. gold futures settled down 1.6 at 1,781.3.

Silver too was caught in gold39;s slipstream, falling 3.8 to 22.24.

U.S. services industry activity unexpectedly picked up in November, with employment rebounding, offering more evidence of underlying momentum in the economy as it braces for an anticipated recession next year.

The hotterthanexpected ISM data prompted a rally in the dollar index, in turn causing a selloff in gold and silver on expectations that the Fed is going to be more hawkish, said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

The dollar39;s subsequent bounce made gold less attractive for bullion traders holding other currencies.

On the technical front, gold hit the 200day moving average last night which is 1,823.90 … we39;ve been pulling back since, Streible added.

Gold also gave up some gains from an earlier rally, prompted by news on top bullion consumer China easing some COVID restrictions.

Gold traders were still focused on the U.S. Federal Reserve39;s ratehike…