Global gold prices are stable, supported by US service sector data

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Global gold prices are stable, supported by US service sector data

Gold prices were steady in early Asian trade on Tuesday after data from the U.S. service sector raised hopes that the Federal Reserve will stop tightening monetary policy this month.

Spot gold settled at $1,961.09 an ounce, while U.S. gold futures rose 0.2 percent to $1,977.30. The dollar index steadied after falling yesterday, Monday, while the yield on 10-year Treasury bonds fell to 3.683 percent.

The Institute for Supply Management survey showed that the U.S. services sector did not grow substantially in May as new orders slowed, pushing down an index of the prices companies pay to buy inputs. Are at their lowest level in three years, which could help the U.S. Fed. Reserves in their fight against inflation.