07.07.202010:18:00UTC+00Gold Edges Lower As Dollar Regains Footing

Gold prices fell slightly on Tuesday as the dollar found some traction on the back of strong economic data released overnight and indications of a revival in China's economy.

Spot gold edged down half a percent to $1,775.86 per ounce, while U.S. gold futures were down 0.6 percent at $1,783.35.

Data showed U.S. service industry activity rebounded to almost pre-pandemic levels last month, as businesses took early steps to reopen following the easing of some of the lockdown restrictions.

But analysts warned those gains could be undone in July as a resurgence of cases in some states leads to another shutdown of businesses.

The United States is "still knee deep in the first wave" of the coronavirus outbreak, Anthony S. Fauci, the director of the National Institute of Allergy and Infectious Diseases, said as 16 U.S. states reported record increases in the new Covid-19 cases, in the first five days of July, according to a Reuters tally.

Florida is again closing its restaurants to indoor dining, gyms and other indoor venues just weeks after they reopened.

U.S. Federal Reserve official Raphael Bostic told the Financial Times in an interview that there are signs that the American recovery is "levelling off".