Gold prices edged higher in Asia on Monday

Investing.com - Gold prices edged higher in Asia on Monday, supported by growing expectations the Federal Reserve will be cautious in raising rates this year.

U.S. markets will be closed for Martin Luther King Day.

In the week ahead, investors will continue to focus on economic reports out of China, with Tuesday’s closely-watched fourth quarter GDP report in the spotlight.

Meanwhile, market players will keep an eye on upcoming U.S. data on inflation, building permits and housing starts to gauge if the world's largest economy is strong enough to withstand further rate hikes in 2016.

Gold for February delivery on the Comex division of the New York Mercantile Exchange rose 0.02% to $1,091.30 a troy ounce.

Also on the Comex, silver futures for March delivery gained 0.24% to $13.935 a troy ounce. Elsewhere in metals trading, copper for March delivery jumped 0.80% to $1.962 a pound.

Last week, gold prices posted their biggest one-day gain in six weeks on Friday, as market players sought refuge in the yellow metal amid steep declines in global stock markets. A batch of soft U.S. economic data and weakness in the U.S. dollar provided further support.

Global stock markets plunged on Friday as oil prices collapsed further below the $30-level, adding to fears over the outlook for global growth.

U.S. retail sales, manufacturing activity and industrial production all fell short of market expectations, the latest indication that economic growth stalled in the fourth quarter.

The downbeat data could persuade the Federal Reserve to delay its next interest rate beyond the first quarter. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.