The price of gold was ticking lower Tuesday morning, with the euro trading weak after data revealed that Eurozone unemployment rate held steady at a record 12 percent in March.
Gold for June delivery, the most actively traded contract, eased $2.70 to $1,598.20 an ounce. Yesterday, gold settled above the $1,600-mark as investors sought the safe haven appeal of the precious metal once again on some disappointing manufacturing sector data from the U.S., and as well supported by a weak dollar. Nevertheless, the spike in prices were somewhat checked after reports showed China's factory sector grew at a faster pace in March, although slightly below expectations.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 1,221.26 tons.
Meanwhile, the U.S. dollar was hovering around its four-month high versus the euro and lingering near a weekly low against sterling and the Swiss franc. The buck slipped back near a fresh one-month low versus the yen.
In economic news, operating conditions across Eurozone manufacturing sector deteriorated further in March, detailed results of a survey by Markit Economics showed. But the rate of decline in activity was less steeper than previously estimated. The headline purchasing managers' index, that measures the performance of the manufacturing sector, fell to 46.8 in March from 47.9 in February. A PMI reading below 50 indicates contraction of the sector.
Separately, final data from Markit Economics revealed Germany's manufacturing activity contracted less than estimated in March. The Markit/BME Purchasing Managers' Index dropped to 49 in March, but above the flash estimate of 48.9. The index fell into the negative zone from 50.3 in February.
Meanwhile, a report from Eurostat revealed that eurozone's unemployment rate stayed unchanged in February, matching economists' forecast. The seasonally adjusted unemployment rate was unchanged at 12 percent in February, after the January figure was revised upwards, statistical office Eurostat said Tuesday. The latest figure matched economists' expectations, and was slightly higher than the originally reported 11.9 percent. In February 2012, the jobless rate was 10.9 percent.
Elsewhere, the prices of silver and platinum were ticking lower in morning deals.
In economic news from the U.S., the Commerce Department will release its factory orders report for February at 10 a.m. ET. Economists estimate factory orders growth of 2.9 percent from the previous month.
Automakers are scheduled to release their monthly sales results for March. Economists expect auto sales to come in at a seasonally adjusted annual rate of 15.4 million units, flat with last month.
