FX.co ★ Gold Slips To One-week Low As Dollar Gains On Risk Aversion

Gold prices hit one-week lows on Tuesday and the dollar edged up, as weak economic data from China and the euro area revived concerns about slowing global growth.

Spot gold slipped 0.4 percent to $1,930.58 per ounce, while U.S. gold futures were down 0.6 percent at $1,955.85.

The dollar index hit its highest level since May on risk aversion after a private survey showed China's service sector grew at the slowest pace in eight months in August largely due to weaker new business.

The Caixin services Purchasing Managers' Index slipped more-than-expected to 51.8 from 54.1 in July. The expected score was 53.6.

Elsewhere, disappointing data from the euro area and the U.K. also signaled waning consumer demand and pointed to more headwinds for the global economy.

Business activity in the euro zone weakened further in August as the economic downturn extended from manufacturing to the services sector.

HCOB's final Composite Purchasing Managers' Index (PMI), compiled by S&P Global, dropped to 46.7 in August from July's 48.6, marking the lowest level since November 2020.

The U.K. services PMI dropped to 49.50 from 51.50 in July, marking the lowest reading since January.