Gold fell to its lowest in over two-weeks on Tuesday as the dollar gained strength after upbeat US economic data. Spot gold edged down 0.3 percent to $1,307.70 an ounce by 0708 GMT. Bullion earlier fell to as low as $1,307.15, its lowest since September 16. US gold futures fell 0.2 percent at $1,310.70 an ounce. US factories ramped up activity in September, shaking off a one-month contraction in a sign the United States was resisting the downward pull of the sluggish global economy.
The dollar index, which measures the greenback against a basket of currencies, nudged up over 0.5 percent to 96.128. "Gold prices at this moment are under pressure," said Mark To, head of research at Hong Kong's Wing Fung Financial Group. "Despite the fact that we saw different types of crisis from Deutsche Bank to Brexit, we can see that prices haven't gone beyond the resistance at $1,350. It is a pessimistic sign that even the speculators could not capitalise on the so-called bad news."
To sees $1,270 to $1,300 an ounce as the immediate support level for gold over the next few days. Spot gold is expected to test a support at $1,307 per ounce, a break below which could cause a loss to the next support at $1,299, according to Reuters technical analyst Wang Tao.
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