FX.co ★ Gold Holds Steady As Dollar Extends Declines

Gold prices held steady on Tuesday, after having reversed course to rally by 1 percent the previous day on weak U.S. data.

Spot gold slipped 0.1 percent to $1,982.99 per ounce, while U.S. gold futures were little changed at $1,999.80.

Investors were assessing Monday's economic data, which showed U.S. manufacturing activity in March slumped to its lowest level in nearly three years due to rising borrowing costs.

While inflation pressures subsided, new orders plunged as a result of tighter credit conditions, the Institute for Supply Management (ISM) survey revealed.

The dollar traded weak for a second consecutive session, hitting two-month lows against a basket of major currencies.

Treasury yields also held declines as traders struck to bets that the U.S. Federal Reserve will resort to cutting rates later this year.

The euro area's industrial producer prices decreased 0.5 percent sequentially in February, following a 2.8 percent decline in January, Eurostat data showed earlier today.