Investing.com - Gold prices held steady to higher in early Asia on Tuesday in holiday-thinned trade that will continue mos of the week.
Japanese markets are closed today to mark Children's Day public holiday, a period commonly known as Golden Week. Markets are closed through Wednesday and re-open on Thursday.
Also up ahead, the RBA's cash rate decision is due at 1430 (0430 GMT). The overwhelming majority of economists expect a 25 basis points cut to a new record low of 2.0%.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery rose 10.08% to $1,187.80 a troy ounce.
In addition, silver for July delivery eased 0.01% to $16.440 a troy ounce.
Copper for July delivery gained 0.06% to $2.913 a pound.
Overnight, gold futures rebounded on Monday to pare some of the gains from an extended slump late last week, amid a stronger dollar boosted by optimistic U.S. factory orders data.
On Monday, the U.S. Census Bureau said in a monthly report that factory orders for the month of April soared 2.1%, above estimates of a 2.0% gain. Bolstered by a surge in aircraft, motor vehicle and energy equipment orders, the reading posted its first gain in eight months.
In March, U.S. factory orders fell slightly by 0.1%, underscoring crashing oil prices and a dip in exports due to the stronger dollar. Elsewhere, the Federal Reserve of Atlanta's GDP Now model forecast growth of 0.8% for the second quarter, amid a decline in nonresidential structures investment by approximately 20%.
The forecasts fall dramatically below consensus estimates of 3.3% for the period. For the first quarter, the Atlanta Fed predicted a paltry gain of 0.2%, in line with actual figures released last week.
Gold, which is not attached to interest rates or dividends, struggles to compete with high yield bearing assets in periods of rising rates.