Investing.com - Gold prices swung between small gains and losses on Tuesday, as market players continued to speculate over the timing of a U.S. interest rate hike.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange tacked on 20 cents, or 0.02%, to trade at $1,118.60 a troy ounce during European morning hours.
The US dollar index, which tracks the greenback against a basket of six major rivals, was last at 96.91, up 0.08% for the day.
The greenback remained supported as investors looked ahead to reports on the U.S housing sector later in the day for fresh cues ahead of Wednesday’s Federal Reserve minutes, which it was hoped would provide more clarity on its plans to hike short-term interest rates for the first time since 2006.
Some traders believe the Fed could postpone raising interest rates as soon as September in response to China’s currency devaluation move, as officials are likely to remain concerned over global growth and inflation pressures.
A day earlier, gold rose $5.70, or 0.51%, to end at $1,118.40, not far from a one-month high of $1,126.30 hit on August 13.
Data on Monday showed that manufacturing activity in the New York region slumped to its lowest level since November 2009 this month as new orders fell sharply.
This was offset by another report showing that U.S. house builder sentiment rose to its highest level in nearly a decade this month.
Gold fell to a five-and-a-half year low of $1,072.30 on July 24 amid speculation the Fed will raise interest rates in September for the first time since 2006. But prices have since rebounded approximately 4.5% on hopes of a delayed U.S. rate hike.
Elsewhere in metals trading, copper for September delivery on the Comex division of the New York Mercantile Exchange declined 1.1 cents, or 0.45%, to trade at $2.311 a pound during morning hours in London.
Copper slumped to a six-year low of $2.292 on August 12 as growing concerns over the health of China's economy drove down prices.
Shares in China plunged sharply on Tuesday despite fresh efforts by the government to calm the market.
The Shanghai Composite tumbled 6% in volatile trade China’s central bank injected the largest amount of cash into the financial system on a single-day basis in almost 19 months in an effort to offset outflows in the wake of a weaker currency.
Market players are concerned that the plunge in the stock market could spread to other parts of the Chinese economy, triggering fears that the Asian nation's demand for the industrial metal will decline.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.