Gold prices edge higher in early Asia with China, Iran in focus

Investing.com - Gold prices edged marginally higher in Asia on Tuesday as China is monitored for any new moves to spur growth and investors await news on talks between Western powers adn Iran over its nuclear program.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery rose 0.06% to $1,186.00.

Elsewhere, silver futures for May delivery gained 0.28% to $16.720 a troy ounce.

Copper futures for May delivery were flat at $2.781 a pound.

Overnight, gold futures plunged on Monday more than $15 an ounce, amid a stronger U.S. dollar as metals traders awaited a potential deal regarding the destabilization of Iran's nuclear program.

Foreign ministers from major powers around the world convened in Lausanne, Switzerland on Monday, as the minutes ticked down to a deadline for reaching a preliminary deal with Iran.

The two sides hope to hammer out the final details of an accord that could limit Iran's nuclear capabilities by midnight on Tuesday evening. Gold is considered to be a safe haven for investors in periods of global instability.

A deal could push investors away from the precious metal and into riskier yield bearing assets.

Data showed personal spending rose in the United States last month for the first time in three months, the unexceptional gains still fell below analysts' forecasts.

The U.S. Commerce Department said in a monthly report that its Personal Spending Index edged up 0.1% in February, below expectations for a gain of 0.2%. Personal income, meanwhile, rose 0.4% above forecasts for a 0.3% increase.

A gauge on existing home sales throughout the United States, however, painted a more optimistic outlook. A report from the National Association of Realtors found that contracts to purchase previously owned homes, soared 3.1% in February, significantly exceeding expectations of a 0.4% increase.

In China, stocks on the Shanghai Composite Index Monday soared 95.47 points or 2.59% to 3,786.57 after the People's Bank of China governor Zhou Xiaochuan remarked that there might be room in the Chinese economy for additional monetary easing.

China is the second-largest purchaser of gold behind India.