Singapore: 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.
Fundamentals
Spot gold was little changed at $1,197.21 an ounce, 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.
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 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. 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.
