Singapore: Gold continued to suffer near a four-year low on Tuesday as the strength in the dollar and the U.S. economy dented the metal`s appeal, while a lack of robust physical buying also added pressure.
FUNDAMENTALS
Spot gold was steady $1,164.31 an ounce by 0036 GMT, holding near a 2010 low of $1,161.25 reached on Friday.
Silver recovered slightly from a four-year low of $15.72 hit on Monday though it continued to stay under pressure.
The dollar hovered at four-year highs early on Tuesday as investors sought the greenback against just about every other major currency.
The dollar`s recent leg up comes after the Bank of Japan expanded its stimulus program, weakening the yen.
Data on Monday showed U.S. manufacturing activity unexpectedly accelerated in October and automobile sales were strong, easing concerns of a significant moderation in economic growth in the fourth quarter.
All these factors dulled the appeal of gold, often seen as an alternative investment to riskier assets.
Even with gold prices dropping to near 4-year lows, buyers in the world`s leading market China remain on the sidelines, suggesting prices have further to fall.
When gold prices are in a slump, Chinese buyers, eyeing a bargain, traditionally move in and stop the rot. But that doesn`t seem to be happening this time around.
The world`s largest gold-backed exchange-traded fund, SPDR Gold Shares, saw an outflow of over $1 billion of metal last month as investors lightened holdings in anticipation of a further price drop from current four-year lows.
India`s largest gold dealer Riddisiddhi Bullions Ltd had its gold import license reinstated by court order on Monday after it was briefly suspended on Friday, a company official said.
