The price of gold was recovering from its one-month low Tuesday morning as the U.S. dollar was struggling versus a basket of currencies ahead of the release of inflation data.
Gold for December delivery, the most actively traded contract, gained $4.10 to $1,741.70 an ounce. Yesterday, gold slipped back to a monthly low after some encouraging macroeconomic data from the U.S. and China lifted equity markets, with the dollar also ticking higher. Investors also awaited the outcome from the crucial European heads of state summit this week, where Greece would be in focus.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved down to 1,333.89 tons from a record high of 1,340.52 tons.
Meanwhile, the U.S. dollar continued to level off from its two-week high versus the euro and from a monthly high against sterling. The buck moved back to a monthly high versus the yen, while ticking lower against the Swiss franc.
In economic news, euro zone inflation for September was revised down to 2.6 percent from the initial estimate of 2.7 percent, Eurostat said. The inflation rate, thus remained steady compared to August's 2.6 percent.
U.K. annual inflation reached the lowest since November 2009, data from the Office for National Statistics showed. Consumer price inflation fell to 2.2 percent, in line with forecast, from 2.5 percent in August. Nonetheless, it remains above the central bank's 2 percent target.
Meanwhile, German economic sentiment improved more than expected in October, a survey by the Center for European Economic Research (ZEW) showed. The ZEW Indicator of Economic Sentiment increased to -11.5 in October from -18.2 in September. This was forecast to rise to -14.9. This was the second increase of the indicator in a row.
The prices of silver and platinum were moving higher in morning deals.
From the U.S., the Labor Departmentc will release its inflation data for the month of September. Economists expect the inflation to have risen year-on-year to 1.9 percent from the previous 1.7 percent
