(RTTNews) - The price of gold slipped back near $1,700 Tuesday morning, paring last week's strong gains, amid a steady U.S. dollar.
Gold for December delivery, the most actively traded contract, were down $21.50 to $1,703.70 an ounce. Yesterday, gold shed over 1 percent as the dollar rebounded amid concerns that a European rescue fund is not large enough to contain a simmering sovereign debt crisis.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 1,243.55 tons.
Meanwhile, the U.S. dollar continued to trade firm versus the euro and sterling. The buck was extending gains versus the Swiss franc, while trading flat against the yen.
In economic news from euro zone, the U.K. economy expanded at a faster than expected pace in the third quarter, the Office for National Statistics said. Gross domestic product increased 0.5 percent quarter-on-quarter, much faster than the 0.1 percent growth logged in the previous quarter. The sequential growth exceeded the 0.3 percent growth forecast.
Elsewhere, the prices of silver and platinum were moving lower in morning deals.
From the U.S., the results of the manufacturing survey of the Institute for Supply Management will be out at 10 a.m. ET. Economists expect the index to show a reading of 52 for October following a 1-point increase in the previous month to 51.6.
Simultaneously, the Commerce Department will release its construction spending report, which is expected to increase 0.3 percent in September.
