Gold pulls back above $1,200, dollar off year highs

Gold futures tilted higher in Asian trade after three sessions of losses, climbing off March 2017 lows, as the dollar index backed off June 2017 highs, following earlier data from China, the world's largest metals consumer, and ahead of US import prices data. 

As of 03:43 GMT, gold futures due in December, rose 0.31% to $1,202.60 an ounce, while the dollar index shed 0.10% to 96.29 against a basket of major rivals. 

Earlier Chinese data showed the unemployment rate rose to 5.1% in July from 4.%, while retail sales rose 8.8% y/y, slowing down from 9.0%, and missing estimates of 9.2%. 

Industrial production rose 6.0% y/y with no change, missing estimates of 6.3%. 

China is embroiled in a trade war with the US, which is harming its economy, especially export-focused businesses, and is expected to weigh on its growth rate.

Now markets await US import prices data, expected to have risen 0.1% m/m in July, compared to a 0.4% decline in June, while prices excluding petroleum are estimated to have risen 4.5% y/y, up from 4.3%.