Gold managed to break through a daily high above $2,660 in Monday's trading yesterday and fell back to current levels as China's stimulus plan failed to provide relief to the market and the United States (US) dollar extended its gains.
At 9.20 am, the price of gold was at $2,648.37 which remained unchanged at the opening of trading on Tuesday in the Asian session.
Over the weekend, data revealed that China's economy is facing deflationary pressures that threaten to prevent it from achieving its Gross Domestic Product (GDP) target of 5%.
China's Finance Minister Lan Foan announced that the government will continue to provide stimulus, support the real estate market and increase the capital of national banks to boost the economy.
Additionally, the US bond market was closed for Columbus Day and prices of the yellow metal fell after strong gains last Friday.
Meanwhile, geopolitics will continue to play a role when citing the yellow metal. Newswires revealed that Israel began a security meeting to decide its response to the Iranian and Hezbollah attacks in Tel Aviv.
This week the US economic schedule will feature the New York Empire State Manufacturing Index on Tuesday followed by the Trade Balance on Wednesday. Members of the Federal Reserve (Fed) will also be speaking throughout the week.
