Gold little changed as dollar holds losses

Gold steadied early Tuesday after rising 0.9 percent in the previous session, as the U.S. dollar held on to losses after bond yields came off of their multi-month highs.

Spot gold was mostly unchanged at $1,194.11 an ounce by 0035 GMT. The metal rose 0.9 percent and touched a high of $1,197.54 in the previous session.

U.S. gold futures were up 0.3 percent at $1,193.90 per ounce.

The dollar index, which measures the greenback against a basket of currencies, fell 0.21 percent at 101.120.

The U.S. dollar took a breather on Tuesday as global bonds steadied from their recent rout, while equities flatlined as political risk resurfaced in Europe ahead of a referendum in Italy this weekend.

Stalling recovery would be the greatest risk facing the euro zone’s economy, the head of the European Central Bank said on Monday ahead of an important policy decision next week, underscoring the ECB’s focus on supporting growth.

The highly uncertain outlook for Britain’s economy as the country prepares to leave the European Union means the Bank of England should keep interest rates on hold, one of the bank’s top policymakers said on Monday.

The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) has approved a sharia standard for gold-based products in a bid to expand the use of bullion in Islamic finance.

Hedge funds and money managers again cut their net long positions in COMEX gold and silver contracts in the week to Nov. 22, U.S. Commodity Futures Trading Commission data showed on Monday.

Source: Reuters