Investing.com - Gold prices rose in Asia on Tuesday after solid manufacturing data in the country set the tone for demand by a top importer of the yellow metal.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at $1,328.60 a troy ounce, up 0.50%, after hiitng an overnight session low of $1,311.20 and off a high of $1,330.20.
In China, the June CFLP manufacturing PMI rose to 51, matching expectations and up from 50.8, marking the fourth straight monthly improvement and the best reading since last November.
"The PMI continued to rise indicating that the tendency towards economic stabilization is basically established. Various policy measures to stabilize growth have taken effect," said Zhang Liqun, a government economist, on the CFLP PMI.
As for HSBC''s PMI, the final came in at 50.7,just a shade below the surprisingly strong flash reading of 50.8.
The surveys strengthen the argument that China''s economy has finally stabilized after a difficult start to 2014.
"The HSBC China Manufacturing PMI final reading for June rebounded to 50.7, up from 49.4 in May, and relatively unchanged from the flash reading. This confirms the trend of stronger demand and faster de-stocking," said HSBC chief China economist Qu Hongbin.
Overnight, gold futures traded to two-month highs after the dollar slipped on mixed U.S. economic indicators, which sent investors jumping to the sidelines to await the U.S. June jobs report due for release on Thursday.
Soft regional manufacturing data offset upbeat housing data and prompted investors to avoid the greenback, which boosted gold''s appeal as a hedge.
The National Association of Realtors reported earlier that pending home sales jumped 6.1% in May from April, rising to its highest level since last September. May''s figure marked the largest increase since August 2010 and far surpassed forecasts for a 1.5% reading.
Still, the dollar slipped and gold rose after industry data released earlier revealed that the Chicago purchasing managers’ index declined to 62.6 this month from 65.5 in May, missing expectations for a 63.0 reading.
Investors were turning their attention to the U.S. June nonfarm payrolls report, which will release a day early on Thursday due to the Independence Day holiday on Friday, avoiding the dollar during the trading session ahead of time.
Markets were eager for the release of a key manufacturing gauge on Tuesday as well.
Silver for September delivery was up 0.32% at $21.123 a troy ounce. Copper futures for September delivery were up 0.05% at $3.207 a pound.
On Tuesday, the dollar should move on the Institute of Supply Management''s report on U.S. U.S. manufacturing activity.