Gold Down to $1,254 an Ounce as Dollar Steadies

Gold was down 0.2 percent to $1,254.60 an ounce on Tuesday, losing the momentum it had Monday when it posted its best daily performance in two weeks, according to Reuters. Gold becomes more appealing to investors when riskier assets decline as investors seek a safe haven for their capital. Yesterday’s disappointing U.S. manufacturing data stimulated gold’s rise, but further insight has moderated the picture.

“The weak U.S. manufacturing data yesterday gave gold a boost but for now it seems the figure can be explained by the same factor that explained the weak January non-farm payrolls report: the weather,” Macquarie analyst Matthew Turner told Reuters. “And until there are more definitive signs this is the start of a new economic downturn, or any certainty that Fed policy would change course, even if it was, there is going to be no conviction to gold’s upside moves.”

Gold for April delivery was down $6.80 at $1,253.10 an ounce, according to Forbes.