2019.10.0106:10:00UTC+00Gold Prices Hover Near Two-month Lows

Gold prices were flat to slightly lower on Tuesday to hover near two-month lows as a blizzard of soft global data encouraged investors to buy dollars.

Spot gold declined 0.4 percent to $1,466.72 per ounce, after hitting its lowest since Aug. 6 at $1,458.50 earlier in the session. U.S. gold futures were virtually unchanged at $1,473.15 per ounce.

The U.S. dollar held near its highest level since May 2017 against a basket of other currencies, a day after data showed that German inflation unexpectedly slowed to the weakest level in almost three years.

The euro area manufacturing sector contracted at the fastest pace in nearly seven years as output, new orders and purchasing fell sharply in September, final data from IHS Markit showed earlier today.

Elsewhere, Japan's manufacturing sector contracted the most in seven months in September as firms reduced production amid weak demand, survey data from IHS Markit showed. The corresponding index dropped to 48.9 from 49.3 in August.

The dollar is also enjoying some support from investor optimism surrounding upcoming U.S.-China trade talks after White House economic advisor Peter Navarro dismissed reports that the Trump administration was considering delisting Chinese companies from U.S. stock exchanges as "fake news."