2020.07.1418:48:00UTC+00Gold Futures Settle Slightly Lower

Gold futures ended lower on Tuesday, but still managed to hold above the crucial $1,600 an ounce mark, as traders continued to weigh the impact of the rapid surge of coronavirus pandemic, and an escalation in U.S.-China tensions on global economy.

The dollar's weakness helped limit gold's loss. The dollar index, which slipped to 96.18, was last seen at 96.21, down 0.27% from previous close.

Gold futures for August ended down $0.70 or about 0.04% at $1,813.40 an ounce, well off the day's low of $1,791.10.

Silver futures for September shed $0.258 or 1.3% to settle at $19.788 an ounce, while Copper futures for September settled at $2.9325 per pound, losing $0.0025 or 0.8% for the session.

In economic news, data released by the Labor Department showed a slightly bigger than expected increase in U.S. consumer prices in the month of June. The data said the consumer price index climbed by 0.6% in June after edging down by 0.1% in May. Economists had expected consumer prices to rise by 0.5%.

Excluding higher prices for food and energy, the core consumer price index ticked up by 0.2% in June after slipping by 0.1% in May. Core prices were expected to inch up by 0.1%.

In coronavirus news, several states across America, and other parts of the world continue to a rapid surge in new cases, raising fears of fresh lockdown measures.

Hong Kong reimposed social distancing measures to combat a sudden spike in coronavirus infections and Singapore's economy plunged into a recession last quarter, fueling worries about the economic recovery.

Tedros Adhanom Ghebreyesus, the director of the World Health Organization, warned that the pandemic is worsening globally and that "there will be no return to the old normal for the foreseeable future."

His remarks came as Florida shattered the national record for a state's largest single-day increase in new confirmed cases. California on Monday banned indoor dining and shuttered movie theaters and bars as coronavirus infection spread beyond the Sun Belt.

Apple has told its employees in the United States that it does not anticipate a full return to physical offices before the end of the year.

Meanwhile, U.S.-China tensions intensified after the Trump administration rejected China's expansive maritime claims in the South China Sea, a move that Beijing criticized as inciting tensions in the region.