Gold prices steadied near a three-month peak on Tuesday, supported by subdued US manufacturing and construction spending, as investors awaited testimony from Federal Reserve Chair Jerome Powell and key jobs data later this week.
Spot gold was flat at $2,114.59 per ounce, hovering around Monday’s levels of $2119.69 that marked its highest point since Dec. 4. Meanwhile, US gold futures edged 0.2 percent lower to $2,121.60.
London’s gold price benchmark hit an all-time high of $2,098.05 per troy ounce at an afternoon auction on Monday.
“This rally in gold was triggered by the softer-than-expected US data and the pullback in real rates… but there has been a general bias to buy dips and a positive underlying investor sentiment towards gold that has also made the market vulnerable to the upside,” UBS strategist Joni Teves said.
Data last week showed a further decline in US manufacturing in February, along with agradual easing of inflation, while consumer sentiment remained weak.
Meanwhile, Fed’s Raphael Bostic said on Monday that the bank is under no pressure to cut rates urgently, highlighting a “prospering” economy and job market.