2020.03.3110:52:00UTC+00Gold Falls As Dollar Firms Up

Gold prices fell sharply on Tuesday and the dollar firmed up as equity markets rebounded after the release of upbeat Chinese data.

Spot gold dropped 1.3 percent to $1,600.30 per ounce, while U.S. gold futures were down 1.9 percent at $1,612.80.

Upbeat factory activity data from China raised hopes of an economic recovery in the world's second-largest economy, following the coronavirus outbreak.

The manufacturing sector in China moved back into expansion in March, the latest survey from the National Bureau of Statistics revealed with a PMI score of 52.0 - beating forecasts for 45.0. That's up sharply from 35.7 in February.

The non-manufacturing PMI came in at 52.3, also exceeding expectations for 42.0 and up from 29.6 in the previous month. The composite PMI posted a score of 53.0, up from 28.9 a month prior.

The National Bureau of Statistics (NBS) attributed the surprise rebound in PMI to its record low base in February and cautioned that the readings do not signal a stabilization in economic activity.

Investors now await tomorrow's European and U.S. PMI readings for further direction as the number of coronavirus cases worldwide continued to grow, nearing 800,000. With more than 160,000 cases, the United States is now the epicenter of the crisis.