Gold held steady below $1,200 an ounce on Tuesday, retaining losses from the previous session, as traders eyed US economic data and the dollar for cues.
Spot gold was little changed at $1,197.21 an ounce by 0044 GMT, below a three-week high of $1,207.70 reached on Friday.
The metal fell 0.3 per cent in the previous session as the rally from a surprise rate cut in top consumer China faded.
US economic data
Traders were awaiting US economic data due later in the day for cues on the strength of the economy and its impact on the dollar.
A rebound in the euro knocked the dollar index from a 4-1/2-year high on Tuesday but the greenback continued to be well-supported.
A stronger greenback makes dollar-denominated gold more expensive for holders of other currencies, and also dents the bullion’s appeal as a hedge.
On Wall Street, both the Dow Jones industrial average and the S&P 500 marked fresh record closing highs, also hurting bullion.
Swiss referendum
Investors were also closely monitoring developments in the upcoming referendum in Switzerland over a proposal that would force the central bank to boost its gold reserves.
The November 30 vote is aimed at preventing the SNB from offloading its gold holdings. It would also require the central bank to bring back gold parked abroad and to hold at least 20 per cent of its assets in gold, compared with 7.8 per cent last month.
Traders and analysts have identified the vote as a factor that could boost gold prices, which fell to a 4-1/2-year low earlier this month. The most-recent opinion poll showed that support among Swiss voters for the initiative has slipped to 38 per cent.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.