Investing.com – Gold prices were little changed near four-month highs on Tuesday, as sentiment on the greenback remained vulnerable after the release of dowbeat manufacturing activity data from the New York region.
Comex were steady at $1,334.80 a troy ounce by 08:40 a.m. ET (12:40GMT), just off Monday’s four-month peak of $1,344.90.
The precious metal briefly retreated earlier Tuesday, as the U.S. dollar staged a modest rebound, but gains were expected to remain limited after data showed that the Empire State manufacturing index fell to in January from 19.60 the previous month, confouding expectations for a decline to only 18.00.
The dollar has recently been pressured lower by concerns the global economic recovery will outpace U.S. growth and prompt other major central banks, led by the European Central Bank to begin unwinding loose monetary policy at a faster pace than expected.
Expectations that the ECB could soon start to scale back its monetary stimulus program received a boost on Monday after ECB Governing Council member Ardo Hansson said bond purchases could end in one step in September if the economy and inflation develop as expected.
The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.34% at 90.44, not far from Monday’s a three-year low of 90.05.
Gold is sensitive to moves in the dollar. A weaker dollar makes gold less expensive for holders of foreign currency.
Elsewhere on the Comex, slipped 0.15% to $17.12 a troy ounce.
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Source: Investing.com
