2021.08.3110:29:00UTC+00Gold Edges Higher As Dollar Weakens

Gold prices edged higher on Tuesday to hover near one-month high as the dollar weakened and Treasuries held steady reflecting concerns of a slower recovery from the coronavirus pandemic.

Spot gold edged up 0.3 percent to $1,815.70 per ounce, after hitting its highest since Aug. 4 on Monday at $1,822.92. U.S. gold futures were up 0.3 percent at $1,817.90.

The dollar was trading near three-week lows against a basket of currencies while the yield on the 10-year benchmark traded around 1.28 percent.

Global stock markets are setting new record highs as hopes for more policy support overshadowed economic risks from a surge in COVID-19 cases and concerns over China's regulatory clampdown on private industries.

Growth worries resurfaced after official data showed China's services sector contracted in August for the first time since the height of the pandemic early last year.

China's factory activity also expanded at a slower pace in August as businesses and the broader economy came under increasing pressure due to domestic COVID-19 outbreaks, high raw material prices and slowing exports.

Investors now look to August U.S. non-farm payrolls data due later this week for more clues on the Fed's tapering strategy.