WASHINGTON (Alliance News) - The price of gold was lingering near its five-month low Tuesday morning as traders were cautious ahead of key US data this week that could provide clues on when the Federal Reserve will begin scaling back its monetary stimulus.
Gold for February delivery, the most actively traded contract, edged up USD0.40 to USD1,222.30 an ounce. Yesterday, gold lost over 2 percent to settle near a five month low as traders were reluctant to add position ahead of a host of macroeconomic data.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 843.21 tons.
This morning, the US dollar was lingering around its monthly low versus the euro, while diving to a two-year low against sterling. The buck continued to move higher versus the yen, while trading flat against the Swiss franc.
In economic news, industrial producer prices in the euro area decreased for the third consecutive month in October, and the rate of fall exceeded economists' expectations, latest data revealed. The producer price index for the domestic market dropped 1.4 percent year-on-year in October, statistical office Eurostat said. This followed declines of 0.9 percent each in August and September. Economists had expected prices to fall 1 percent in October.
Elsewhere, British construction sector activity grew at the sharpest pace in just over six years, led by solid expansion in output and incoming new work, a survey by Markit Economics and the Chartered Institute of Purchasing and Supply revealed. The headline purchasing managers' index rose to 62.6 in November from 59.4 in October, signaling another strong upturn in the construction sector. The reading was the highest since August 2007.
In other markets, the prices of silver and platinum were trading lower in morning deals.
