December gold futures are expected to open floor trading in New York around $7 an ounce lower Monday, based on electronic activity ahead of the pit session at the Comex division of the New York Mercantile Exchange. December silver is expected to be 25 cents weaker. Spot gold fell back below $1,000 in overseas trading in response to a stronger U.S. dollar, along with selling by traders who were previously long in order to book profits, London-based analysts said. At 7:57 a.m., EDT, spot gold was trading down $8.55 to $997.30 an ounce. The dollar rose overnight on fears that a trade war could erupt between China and the U.S. after President Obama Friday slapped a 35% import tax on tires made in China on top of the existing 4% tariff. China accused the U.S. of "rampant protectionism" and threatened action against imports of U.S. poultry and vehicles. Concern over trade sanctions multiplying immediately led to a rise in risk aversion, with investors heading back into the safe havens of the dollar and the yen, said currency analysts. In other markets that have the potential to impact metals in the short term, the euro is down to $1.4565 from $1.4582 late Friday afternoon. In screen trading ahead of the pit open, the December S&P 500 futures are down 8 points to 1,029.30. October crude oil is down 42 cents to $68.86 a barrel in overnight activity. No major U.S. economic reports are on the calendar for Monday, but the calendar is heavy over the next three days, starting with the New York Fed manufacturing survey, Producer Price Index and retail sales on Tuesday. Other reports this week include the Consumer Price Index, current account and industrial production on Wednesday, then jobless claims, housing starts and Philadelphia Fed manufacturing index Thursday. In New York Friday, most-active gold closed the week above the closely watched $1,000-an-ounce level, supported by further weakness in the U.S. dollar and with traders using a correction lower earlier in the week as a buying opportunity. December gold rose $9.60 to $1,006.40 and December silver rose 3 cents to $16.70. Comex gold warehouse stocks were up 17,442 ounces at 9,194,167 ounces Friday, while silver stocks were down 5,057 ounces at 116,834,684 ounces.

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