WASHINGTON (dpa-AFX) - Gold prices fell on Tuesday as the dollar strengthened on the back of positive manufacturing data released overnight. A rebound in global equity markets also reduced the appeal of gold.
Spot gold declined 0.6 percent to $1,573.45 per ounce, after hitting its highest level since Jan. 8 at $1,591.46 in the previous session. U.S. gold futures were also down 0.6 percent at $1,573.25.
A key gauge of U.S. factory activity rebounded more than expected in January, climbing out of contraction territory for the first time since July amid a surge in new orders.
Global equities rebounded after China's central bank unexpectedly lowered the interest rates on reverse repurchase agreements by 10 basis points on Monday as part of efforts to relieve pressure on the economy from a rapidly spreading coronavirus outbreak.
Meanwhile, China's nationwide death toll currently stands at 425, with over 20,400 people infected nationwide.
Saying that the crisis was 'a major test of China's system and capacity for governance,' China's leader, Xi Jinping, has signaled a more assertive strategy for dealing with the virus outbreak.
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