Investing.com - Gold futures held steady but came off earlier highs on Tuesday after soft European data weakened the euro and sent investors snapping up greenback positions.
Gold and the dollar tend to trade inversely with one another.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at 1,233.60 a troy ounce, up 0.29%, up from a session low of $1,231.30 and off a high of $1,238.50.
The December contract settled up 0.68% at $1,230.00 on Monday.
Futures were likely to find support at $1,217.60 a troy ounce, last Friday's low, and resistance at $1,243.20, the high from Sept. 16.
Soft European data gave the dollar a boost on Tuesday, though gold stayed in positive territory on demand from investors seeking safe-haven to digest turbulence in equities markets.
The ZEW Centre for Economic Research reported earlier that its German economic sentiment index fell to -3.6 this month from September’s 6.9 reading. Analysts had expected the index to come in at 1.0 in October.
The index of euro zone economic sentiment plunged to 4.1 in September from 14.2 in August, well below expectations for a decline to 7.1.
A separate report showed that eurozone industrial production contracted 1.8% in August from July, outpacing expectations for a 1.6% decline. July's figure was revised to a 0.9% rise from a previously estimated 1.0% increase.
Year-on-year, industrial production fell 1.9% in August, surpassing expectations for a 0.9% decline and after rising at a rate of 1.6% the previous month.
European Central Bank President Mario Draghi has said monetary authorities will do what it takes to steer the continent away from deflationary declines, and Tuesday's data sparked expectations that further stimulus measures may be needed to kick-start the economy.
Elsewhere, U.S. stocks rebounded on Tuesday after heavy losses in recent sessions, though many investors remained gold, a refuge in times of volatility, until more markets cease to roil as much as they have been.
Meanwhile, silver for December delivery was up 0.31% at $17.398 a troy ounce, while copper futures for December delivery were up 1.47% at $3.085 a pound.