The price of gold moved back near a three-month high Tuesday morning with the US dollar trading mixed amid renewed hopes the Federal Reserve would maintain it quantitative easing measures following a recent batch of downbeat macroeconomic data. Also, geopolitical tensions in Syria supported bullion prices.
Gold for December delivery, the most actively traded contract, gained $17.90 to $1,411.00 an ounce, levels not seen since early June 2013. Yesterday, gold settled marginally lower as the dollar trended higher against a basket of major currencies, even as investors pondered over some weaker than expected durable goods orders data from the U.S. for July. The soft data once again renewed hopes the Federal Reserve will maintain its bond-buying program, while traders awaited fresh triggers from this week's macroeconomic news.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 920.13 tons.
Meanwhile, the U.S. dollar continued to hover near its one-week high versus the euro and the Swiss franc, while extending gains against sterling and the yen.
In economic news from the euro zone, German business confidence improved more-than-expected to 107.5 in August, reports said citing survey results from the Ifo Institute. Economists had forecast the index to rise to 107 in August from the originally estimated level of 106.2 in July. Similarly, current assessment among survey participants climbed to 112 from 110.1. It was forecast to rise moderately to 111.
Elsewhere, the prices of silver and platinum were moving higher in morning deals.
From the U.S., the results of the S&P/Case-Shiller house price survey for June will be released at 9 a.m. ET. Economists expect the 20-city composite house price index for the month to increase by a seasonally adjusted 1 percent month-over-month. Annually, the index is expected to increase by an unadjusted 12.2 percent.
Later during the session, the Conference Board is due to release the results of its consumer confidence survey. The consensus estimates call for a small decline in the index to 78 in August from 80.3 in July.
