WASHINGTON (dpa-AFX) - Gold ticked higher in cautious trade on Tuesday after Fed officials pushed back against expectations that the U.S. economy is in recessionary freefall.
However, they acknowledged that rate cuts might be necessary to stave off economic downturns.
Spot gold edged up 0.1 percent to $2,412.86 per ounce while U.S. gold futures were up 0.4 percent at $2,453.40.
The dollar index edged up after data showed a rebound in the U.S. services sector activity from a four-year low in July.
On Monday, two senior Fed officials have attempted to calm markets after investors triggered a global equity sell-off.
In an interview with broadcaster CNBC, Chicago Fed Bank President Austan Goolsbee cautioned against taking too much signal from a global stock market rout, adding that the central bank would react to signs of weakness in the economy.
San Francisco Federal Reserve Bank President Mary Daly said the U.S. economy is slowing but the labor market is holding up better than would be indicated by investor reaction to recent employment data.
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