RTTNews - The price of gold snapped a four-session losing streak on Tuesday as the dollar pulled back versus its European rivals.
The most-actively traded December gold contract climbed to $947.60, up 70 cents on the session. Gold for immediate delivery gained 80 cents to $945.80 per ounce.
The dollar saw modest weakness against the euro and sterling, after reaching near-term highs against each currency earlier in the week. Gold usually moves opposite the dollar because of its hedge value.
On the economic front, the Labor Department reported productivity increased by 6.4% in the second quarter compared to a downwardly revised 0.3% increase in the first quarter. Economists had expected productivity to increase by 5.5%.
Meanwhile, the Labor Department also said that unit labor costs fell by 5.8% in the second quarter following a revised 2.7% decrease in the first quarter. Economists expected a 2.5% drop.
A Commerce Department report showed that wholesale inventories fell 1.7% in June following a revised 1.2% decrease in May. Economists had expected inventories to fall 0.9% compared to the 0.8% drop originally reported for the previous month.
The Federal Open Market Committee's two-day meeting begins today, with the rate decision expected to be revealed Wednesday. The central bank is widely expected to keep the fed funds futures rate unchanged.
Earlier, international trade data is expected at 8:30 a.m. ET. A drop of 0.9% is forecast for June, compared to a decline of 1.2% in May.
The treasury budget report is due at 2 p.m. ET. The deficit is expected to widen to $180 billion in July, compared to $102 billion in June.
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