Gold Ends A Tad Higher On Global Cues

(RTTNews) - Gold futures snapped a two-day loss to end a tad higher on Tuesday, with investors awaiting further cues on U.S. monetary policy amid lingering concerns over geopolitical tensions.

Some dovish remarks from Federal Reserve Vice Chair Stanley Fischer yesterday failed to give the precious metal much of a lift, suggesting gold futures may have topped out for now.

Fischer said U.S. and global economic recoveries have been somewhat disappointing so far, hinting that the Fed will maintain its ultra-low interest rates for an extended period.

Weakness in European equity markets on the back of some soft German economic data also contributed to gold's stagnation.

The European Central Bank has been stubbornly adhering to current monetary policy, but some analysts say the ECB will be compelled to issue further stimulus in the coming months.

Tensions in Ukraine continued to persist, with reports that a convoy of 280 Russian trucks carrying humanitarian aid is headed for Ukraine. However, Ukraine has indicated it would not allow entry to the trucks unless Russia adheres to protocol and send the aid under the leadership of the Red Cross.

Gold for December delivery, the most actively traded contract, edged up $0.10 to close at $1,310.60 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday.

Gold for December delivery scaled an intraday high of $1,309.20 and a low of $1,306.80 an ounce.

On Monday, gold futures ended lower as global equity markets trended higher prompting investors to seek riskier assets, with easing geopolitical concerns.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, remained unchanged at 795.86 tons on Tuesday from its previous close.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 81.55 on Tuesday, up from its previous close of 81.46 late Monday in North American trade. The dollar scaled a high of 81.68 intraday and a low of 81.47.

The euro traded lower against the dollar at $1.3365 on Tuesday, as compared to its previous close of $1.3385 late Monday in North American trade. The euro scaled a high of $1.3387 intraday and a low of $1.3336.

In economic news, German economic confidence weakened sharply to its weakest level since December 2012 as geopolitical tensions weighed on analyst expectations, a survey from the Mannheim-based Centre for European Economic Research /ZEW showed Tuesday.

The indicator of economic sentiment plunged by 18.5 points to 8.6 in August, while it was forecast to drop to 17.