(RTTNews) - The price of gold was ticking lower Tuesday morning as the euro was struggling after data out of the euro zone revealed contraction in private sector activity.
Gold for August delivery, the most actively traded contract, eased $5.30 to $1,572.10 an ounce. Yesterday, gold snapped a two-session winning streak to end lower on investor concerns over the euro zone financial problems mainly focused on Spain and Greece. In Spain, yields on 10-year government bonds surged above 7.5 percent mark to new euro-era highs.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 1,254.64 tons.
Meanwhile, the U.S. dollar was hovering around its 2-year high versus the euro and continued to move higher against sterling. The buck was lingering around a monthly-low versus the yen and trading flat against the Swiss franc.
In economic news, the euro zone private sector economy contracted for the tenth time in the last eleven months, with the rate of decline unchanged on June, Markit Economics said. The flash composite Purchasing Managers' Index remained unchanged at 46.4 and matched the consensus forecast. A reading below 50 suggests contraction in the sector.
Further, Germany's private sector continued to shrink in July, marking the weakest performance since June 2009, Markit Economics said. The flash composite output index fell for the sixth month running in July, to 47.3 from 48.1 in June. The index has posted reading below 50 in each month since May.
The prices of silver and platinum were ticking lower in morning deals.
From the U.S., the Federal House Finance Agency will release its house price index for May at 10 a.m. ET. Economists expect a 0.3 percent increase in the house price index compared to a 0.8 percent increase in April.
