The price of gold was moving higher Tuesday morning with the US dollar trading weak versus a basket a currencies as investors keenly watch the implications of the partial shutdown of the U.S. government.
Gold for December delivery, the most actively traded contract, edged up $4.70 to $1,331.70 an ounce. Yesterday, gold settled lower as investors were cautious amid fears of a possible U.S. government shutdown and as the dollar weakened against a basket of major currencies. Investors weighed the looming shutdown and its impact on the demand for the precious metal.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 905.99 tons.
Meanwhile, the U.S. dollar was lingering around its nine-month low versus the euro and sterling, while dipping to a monthly low against the yen.
In economic news from the euro zone, Germany's unemployment rate rose to seasonally adjusted 6.9 percent in September from 6.8 percent in August, the Federal Labor Agency showed. The rate was expected to remain unchanged at 6.8 percent. At the same time, the number of unemployed people increased sharply by 25,000, while it was forecast to drop by 5,000. In August, unemployment rose by 9,000.
Euro zone's manufacturing sector expanded at a slower pace in September, final results of a survey by Markit Economics confirmed. The headline purchasing managers' index edged down to 51.1 in September from August's 26-month high of 51.4. The outcome matched the flash estimate released last month.
Meanwhile, the euro zone jobless rate remained unchanged at seasonally adjusted 12 percent in August, Eurostat reported. Economists had forecast the unemployment rate to stay at July's originally estimated 12.1 percent.
Elsewhere, the prices of silver and platinum were trading mixed in morning deals.
From the U.S., Markit will release the final PMI reading based on its manufacturing survey for September at 8:58 am ET. Economists expect a small upward revision to the preliminary reading to 52.9 compared to 53.1 in August.
The Institute for Supply Management is due to release the results of its national manufacturing survey for September at 10 am ET. The consensus estimates call for a reading of 55 compared to 55.7 in August.
Simultaneously, the Commerce Department will release its construction spending report for August. Construction spending is expected to have risen by 0.4 percent month-over-month in August compared to a 0.6 percent increase in July.
