According to Kitco, gold prices continue to be under pressure and cannot hold the support level of 3,300 USD/ounce, due to better-than-expected performance of the US manufacturing industry despite still in a state of contraction.
The US Commerce Department said Tuesday that sustained commodity orders fell 6.3% last month, after being revised up 7.5% in March. The figure was better than expected as economists expected a 7.6% decline.
The sustainable commodity order index excluding the transportation industry increased by 0.2% in April, also exceeding the forecast of a decrease of 0.1%.
Finally, orders for non-defense capital equipment excluding the aircraft manufacturing industry decreased by 1.3%, compared to a 0.3% increase in March; economists forecast a decrease of 0.1%.
Analysts note that any report that eases concerns about a serious recession will put pressure on gold's safe-haven demand.
In another development, gold prices were under pressure after the latest data showed that US consumer sentiment improved beyond forecasts this month.
The Consumer Confidence Index rose to 98 points in May, well above economists' consensus forecast of 87 points and also higher than the downward-adjusted 85.7 points in April, the Conference Board announced on Tuesday.
The Present situation index, based on consumers' assessment of the current business situation and labor market, increased 4.8 points to 135.9 in May. Meanwhile, the Expectations Index, which reflects consumers' short-term prospects for income, business and the labor market, increased sharply by 17.4 points to 72.8, but is still much lower than the threshold of 80 - often considered a warning sign of economic recession.
Gold prices fell to a low in the session shortly after the data was released at 10:00 a.m. EDT, with the final spot gold price recording 3,297.15 USD/ounce, down 1.35% in the session.
Stephanie Guichard, senior economist and global index at the conference, said: Consulent confidence improved in May after years of decline. The recovery began clearly ahead of the US-China trade deal on May 12 but accelerated afterwards. The monthly improvement comes largely from consumer expectations, as all three components of the expectations index business conditions, job prospects and future income rose from Aprils lows.
Consumers are less pessimistic about business conditions and job opportunities in the next six months, while regaining optimism about future income prospects. Consumer assessments of the current situation have also improved. However, although consumers have a more positive view of current business conditions compared to last month, their assessment of current job opportunities has weakened for the fifth consecutive month, she said.
The market is currently paying attention to the next economic data to determine the short-term gold price trend.
