Gold Holds Range As Investors Seek Clarity on US Monetary Policy Outlook
Gold traded in a narrow range in Asia on Tuesday with investors treading water ahead of more clarity on the outlook for U.S. interest rates.
On the Comex division of the New York Mercantile Exchange, gold for December delivery was up 0.02% to $1.132.90 a troy ounce, swinging between narrow gains and dips.
Silver for December delivery fell 0.16% to $15.385 a troy ounce.
Copper for December delivery rose 0.05% to $2.314 a pound.
The Federal Reserve faces headwinds in raising interest rates by the end of 2016 as economic data and global growth in economies like China present a poor backdrop for stricter monetary policy.
Overnight, gold futures slumped to near monthly lows on Monday, as mixed manufacturing data in China provided investors with added uncertainty on demand in the world’s second-largest economy.
Last month, the Caixin China manufacturing purchasing managers index rose to 48.3, up from 47.2 in September, according to research firm Markit.
Any reading below 50 provides strong indications of contraction in factory activity. It marks the eighth consecutive month of contraction in China’s manufacturing sector. China’s official manufacturing PMI, released on Sunday, remained below analysts’ forecasts at 49.8, unchanged from the previous month.