Gold prices drifted lower on Tuesday, as the U.S. dollar gained in strength against most major currencies amid mounting worries about the impact of the ongoing trade disputes on the global economy.
The greenback advanced amid the economic turmoil in Argentina and Turkey and the sharp slide of their currencies Peso and Lira. Also, with a rate hike announcement from the Fed almost certain, traders are lapping up the dollar.
Gold futures for December ended down $7.60, or 0.6%, at $1,199.10 an ounce. On Friday, gold futures for December ended up $1.70, or 0.1%, at $1,206.70 an ounce.
Silver futures for December settled at $14.180 an ounce, down $0.377 from previous close.
Copper futures ended down $0.0690, at $2.6020 per pound.
According to a report released by the Institute for Supply Management, activity in the U.S. manufacturing sector unexpectedly grew at a faster rate in the month of August. The ISM said its purchasing managers index climbed to
61.3 in August from 58.1 in July. Economists had expected the index to dip to 57.7.
The unexpected increase by the headline index came as the new orders jumped to 65.1 in August from 60.2 in July and the production index surged up to 63.3 from 58.5.
The report said the employment index also rose to 58.5 in August from 56.5 in July, indicating an acceleration in the pace of job growth in the manufacturing sector.
The pace of price growth slowed down in August, with the prices index dipping to 72.1 in the month, from 73.2 in July, the report said.