Investing.com - Gold prices held steady to higher in Asia on Tuesday with investors looking for any cue on physical demand ahead of end-year holidays.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at $1,198.20 a troy ounce, up 0.08%.
Overnight, gold prices held steady on Monday, supported by softer dollar and a Chinese decision to trim interest rates, though uncertainty ahead of Tuesday's economic growth and consumer confidence reports capped gains.
Gold often serves as a hedge to sliding currencies, the product of loose monetary policy.
A softer dollar, the product of upbeat European data, also supported prices.
The single currency found support and sent the dollar falling after a report showed that German business sentiment improved this month after six successive months of declines, indicating that the downturn the euro area’s largest economy may be ending.
Germany’s Ifo business climate index rose to 104.7 from 103.2 in October, confounding forecasts for a decline to 103.0.
The current conditions index rose to 110.0 from 108.4 last month and the expectations index improved to 99.7 from 98.3, both figures topping market forecasts.
The data helped offset expectations that the European Central Bank may loosen policy further to stimulate the economy, possibly rolling out purchases of government bonds.
Still, gold prices dipped as the dollar regained some ground as investors avoided the yellow metal ahead of the release of revised data on U.S. third-quarter gross domestic product and a report on consumer confidence.
Silver futures for March delivery rose 0.07% at $16.517 a troy ounce. Copper futures for March delivery were flat at $3.005 a pound.