The yellowish metal returned to terrain north of the milestone price of $1,600 per troy ounce as economic concerns about the slackening pace of manufacturing in China, the euro zone and the U.S. indicated the sector is going through a rough patch, which furthers the belief about central bank intervention.
Weaker returns regarding U.S. manufacturing were unanticipated and prompted the belief that the U.S. Federal Reserve was planning on stepping in, states a note penned by analyst Marc Ground with Standard Bank.
"Such a move would be a positive for precious metals, of course, especially gold," the note states, according to The Wall Street Journal.
At 12:14 p.m. on Tuesday, gold futures gained 1.6 percent, a $25.50 lift to $1,623.20 per troy ounce.
MarketWatch reports the European Central Bank is likely to slash interest rates on Thursday when its policy makers convene. China is projected to ease banks' minimum reserve requirement ratio.
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