2020.09.0118:34:00UTC+00Gold Gives Up Early Gains, But Manages To Settle At 2-week High

Gold futures ended at two-week high on Tuesday despite paring some early gains after the greenback recovered some lost ground on encouraging economic data.

The dollar index, which opened slipped to 91.75 in the Asian session, hitting its lowest level in more than 2 years in the process, rallied to 92.39 around mid afternoon, and was last seen at 92.30, up 0.17% from previous close.

Gold futures for December ended up $0.30 or about 0.02% at $1,978.90 an ounce, after posting a high of $2,001.20 earlier in the session.

Silver futures for December closed up $0.051 at $28.645 an ounce, while Copper futures for December settled at $3.0285 per pound, down $0.0330 from previous close.

The dollar recovered after the Institute for Supply Management released a report showing manufacturing activity in the U.S. expanded at a faster rate in the month of August.

The dollar suffered notable losses late last week and on Monday, weighed down by the Federal Reserve's decision to alter its monetary policy framework to allow for inflation to rise above, or below its 2% annual target for longer periods. The Fed had stated that it might hold interest rates at lower levels for a long period.

The ISM said its purchasing managers index rose to 56.0 in August from 54.2 in July, with a reading above 50 indicating growth in manufacturing activity. Economists had expected the index to inch up to 54.5.