Tuesday morning bullion revealed little changes, trading below $930 per ounce up from Monday’s $920 level as growing caution over a sustainable recovery in the global economy helped stop the dollar's fall against major currencies.
Spot gold inched down to $923.75 per ounce as of 3:10 GMT, compared to New York's notional close of $924.00. Gold hit a two-week low of $920.10 on Monday on the back of a stronger dollar, as investors preferred the global reserve currency to bullion as a safe store of value amid fears over the economic outlook.
Precious metal has retreated by more than 6% from a four-month high near $990 struck in early June.
US gold futures for August delivery fell $0.2 to $924.10 per ounce. On Monday the contract fell $6.70 on the COMEX division of the New York Mercantile Exchange. Non-commercial net long New York gold futures positions edged down to 164,186 lots in the week to June 30 from 166,294 lots, as he weekly Commitments of Traders report issued by the Commodity Futures Trading Commission showed late on Monday. The net long positions have fallen from a peak of 189,674 lots marked in the week to June 9.
The SPDR Gold Trust holdings, as a factor suggesting receding investor appetite, lost 0.03% on Monday. The holdings steadied at 1,120.19 tonnes as of July 6, down 13.84 tonnes or 1.2% from a record 1,134.03 tonnes marked on June 1.