Gold bounced back on Tuesday in U.S. trading recovering some of its recent slump. The metal gained for the first time in three sessions.
April gold finished the session at $922.60 per ounce, a gain of $7.10 for the day. The metal tested the $910 mark in the previous session.
The dollar's rally against higher-yielding currencies slowed on Tuesday in New York. The buck saw choppy dealing versus the euro and held steady versus the pound. Gold usually moves opposite the dollar because of the precious metal's hedge appeal.
On the economic front, a report showed that the S&P/Case-Shiller 20-City Composite Home Price Index for January fell 19.0 percent compared to the same month a year ago, reflecting an acceleration from the 18.6 percent year-over-year decline reported for December.
Later, a report released by the Institute for Supply Management - Chicago showed that the index of activity in the sector fell to 31.4 in March from 34.2 in February, with a reading below 50 indicating a contraction in the sector. Economists had been expecting the index to edge up to a reading of 34.3.
Meanwhile, the Conference Board's consumer confidence index edged up to 26.0 in March from a record low reading of 25.3 in February, although economists had been expecting a somewhat more significant increase by the index to a reading of 28.0.
Meanwhile, Minneapolis Federal Reserve Bank President Gary Stern said resolving the issue of too-big-to-fail should be among policymakers' highest priorities. Speaking at the Brookings Institute in Washington, D.C., Stern discussed the roots of the current problem and urged action to mitigate the devastating effects of the failure of a systemically important institution.
April-dated gold futures ended at $916.80 per ounce, down $7.70 for the day. Gold plunged $16.70 on Friday as its safety value was reduced by a stronger dollar.
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