| GEO Business|
| Gold falls slightly on low inflation outlook|
| Updated at: 1019 PST, Monday, July 19, 2010|
SYDNEY: Gold staged a modest retreat early on Monday, after falling to its lowest in more than a week in the previous session, as low U.S. inflation expectations outweighed any upside sentiment from weaker equity markets.
Gold was down $1.05 to $1,192.05 at 0109 GMT versus Friday's nominal close of $1,193.10.
Gold fell on Friday as weak U.S. inflation data and heavy inflows to government bonds from the equity market prompted funds to sell.
Data on Friday also showed consumer sentiment crumbled in early July to its lowest level in 11 months.
On Monday, the Shanghai composite index was down nearly 1 percent to 2,401.774 .SSEC in early trading, with Japan closed for a market holiday.
U.S. gold futures for August delivery GCQ0 climbed 0.4 percent to $1192.50 an ounce against Friday's settlement price of $1,188.20.
Data supplied by the world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, and last updated on Thursday showed holdings of 1,314.211 tonnes, a steady decline since a record high of 1,320.436 tonnes in late June.