Don't want to miss the best from Business Standard?
SINGAPORE (Reuters) - Gold was a touch firmer on Tuesday, after clocking up near-2 percent gains in the previous session, as weak U.S. manufacturing data raised hopes the Federal Reserve would not wind down its monetary stimulus soon.
FUNDAMENTALS
* Spot gold edged up 0.07 percent to $1,412.11 an ounce by 0016 GMT. It gained 1.8 percent to $1,416.11 on Monday as the dollar tumbled on weak manufacturing data.
* U.S. gold was little changed at $1,412.20.
* The U.S. manufacturing sector contracted in May, driving activity to the lowest in nearly four years, in the latest sign the economy is encountering a soft patch.
* Data from China and Europe also showed that manufacturers struggled last month as demand fell, suggesting an ailing world economy that still needs a steady diet of central bank support.
* Fed chairman Ben Bernanke had said last month the central bank could slow down stimulus measures if the U.S. economy strengthened.
* India's gold imports jumped to 162 tonnes in May, from 142.5 tonnes in April, despite a rebound in prices. The data raised fears that India, the world's biggest bullion buyer, could impose more restrictions on imports in an effort to reduce its deficit.
* Holdings of New York's SPDR Gold Trust, the largest gold-backed exchange-traded-fund, remained unchanged on Monday, showing investors' growing confidence in the metal. The near-three week decline in the holdings came to a stop last Wednesday.
MARKET NEWS
* The U.S. dollar wallowed at one-month lows against a basket of major currencies on Tuesday, suffering a vicious setback after disappointing data curbed speculation the Fed would scale back its stimulus anytime soon.
(Reporting by A. Ananthalakshmi; Editing by Ed Davies)
