IBT Staff Reporter

Gold continued its downward journey on Tuesday with the global market witnessing a slump in demand. Gold for August delivery fell $6.30, or 0.5%, to $1,181.90 an ounce on the Comex division of the New York Mercantile Exchange, the lowest price for a most-active contract since May 21. Gold prices are down 6% from June's record highs.

The aviation industry's largest airshow was shifting its focus to military firepower on Tuesday against a backdrop of tighter budgets, while commercial air carriers were still buying planes in bulk.

Gold held above $1,180 an ounce in Europe on Tuesday as lower prices tempted some buyers back to the market after prices slipped to two-month lows in the previous session, but the technical picture remained weak. Gold has been pressured by concerns over deflationary signals from the United States and other economies, analysts said, while a recovery in appetite for assets seen as higher risk has also deflected some investment from the precious metal.

The euro eased a bit after hitting a two-month high against the dollar on Tuesday, but remained supported as weak U.S. economic data hurt the greenback. The euro rose as high as $1.3029 on trading platform EBS, with dealers saying key stop-losses -- closing of positions to cap loss-making trades -- had been taken out around $1.3010, with more above $1.3030. By 0929 GMT (5:29 a.m. EDT), it was up 0.1 percent on the day at $1.2955.

Emerging markets were in high demand in mid July, with bond fund inflows at a record, as investors chose dynamic developing economies over lagging advanced markets, EPFR Global said on Tuesday. Emerging market equity funds tracked by EPFR posted combined inflows of more than $3 billion for the week ended July 14, while emerging market bond funds took in $745 million, bringing their year-to-date inflows to an all-time high of $18.5 billion.

Can white elephants come in green? President Barack Obama flew to Holland, Mich., on Thursday to attend groundbreaking ceremonies for a new lithium-ion battery plant, which the White House advertised as an example of federal stimulus grants at work and a gateway to a clean-energy future.

The chief of Greece's Public Debt Management Agency (PDMA) said on Tuesday he was satisfied with the sale of 1.95 billion euros ($2.53 billion) of 13-week T-bills at a yield of 4.05 percent, the country's second debt sale since a giant EU/IMF emergency loan backstop agreed in May.

The European Bank for Reconstruction and Development warned on Tuesday of contagion risk from a sell-off in Hungary as Budapest appeared unwilling to back down in a disagreement with lenders over fiscal reform and a bank tax.

China on Tuesday denied a report that it had surpassed the United States last year to become the world's largest energy user.

Futures for the S&P 500, Dow Jones and Nasdaq were down 0.2 to 0.3 percent at 900 GMT (5 a.m. EDT), pointing to a lower open on Wall Street on Tuesday.

A consortium of 55 entertainment and technology giants hoping to standardize digital formats for video playback said on Monday it will start beta testing in the fall as it added two more companies to its ranks and unveiled its brand name, Ultraviolet.

Financial markets juggled with competing drivers on Tuesday as investors generally boosted stocks in the hope of more good earnings reports and the dollar slipped on concerns about the U.S. economy.

Japan's Sharp Corp said on Tuesday it would enter the electronic reader and book markets, hoping to grab a slice of the hot but increasingly crowded sector popularized by Apple Inc and Amazon.com.

Asia's top LCD makers are bracing for earnings to falter in the second half of the year as TV sales lose momentum on concerns that a debt crisis in Europe will crimp overall IT spending.

Asian stocks broadly rose on Tuesday as a firm performance on Wall Street and optimism over corporate earnings offset increasing worries about the U.S. economy.

(Corrects to say in paragraph 5 to say yen near 7-month high, not 7-week)

Oil climbed to $77 on Tuesday as forecasts for a fourth consecutive weekly drop in U.S. crude inventories bolstered the positive influence of rising stock markets in most of Asia. Shares of resource firms and banks clawed back some of their recent losses, helping to boost U.S. crude for August by 47 cents to $77.01 a barrel at 0644 GMT (2:44 a.m. EDT) for a second straight day of gains.

Investors should take data showing currency speculators started to bet against the U.S. dollar this month for the first time since March with a big grain of salt. While the turnaround in positioning from long to short on the dollar shows that sentiment on the U.S. currency has deteriorated sharply, analysts say it should not be interpreted as a sign the greenback is about to collapse.

The dollar eased on Tuesday, inching closer to a two-month low versus the euro hit last week as investors continued to cut long positions on more disappointing U.S. economic data. The greenback rose a little against the yen on bids from Japanese importers, but remained close to a seven-month low marked last week, leading many market players to look to what authorities in Japan could do about a firm yen.

Gold regained strength on Tuesday as jewelry makers resurfaced after the price dropped to its weakest in nearly two months, while investors looked to movements in other markets for further cues. A drop in Japanese shares also spurred buying from speculators, who are keeping an eye on U.S. corporate earnings and Federal Reserve Chairman Ben Bernanke's comments on the economy on Wednesday. Silver and palladium firmed, but platinum tracked equities lower.

The dollar eased slightly on Tuesday, inching closer to a two-month low versus the euro hit last week as investors continued to cut long positions on more disappointing U.S. economic data. The greenback rose a little against the yen on bids from Japanese importers, but was still within striking distance of a seven-month low marked last week, leading many market players to look to what authorities in Japan could do about a firm yen.

Gold prices remained motionless in Asian trade Tuesday after hitting near two months low on Monday as traders looking for clues from other markets. Spot gold was seen trading at $ 1181.97 an ounce at 11.30 a.m Singapore time after hitting as low as $1,177.47 on Monday, the lowest level for a most-active contract since May 24

China sounded a gloomy note on Tuesday about its export prospects, warning in particular that belt-tightening by deeply indebted European Union governments would dampen demand for the country's goods.

Asian stocks rose on Tuesday, looking past weak revenue growth at top U.S. firms and more weak U.S. economic data, as shares of resource firms and banks clawed back some of their recent losses. The Japanese yen hovered near its recent 7-week high against the dollar, amid growing talk of intervention as traders wondered if Tokyo could stomach further yen gains.

India's Tata Steel has started talks with lenders including Citigroup to refinance as much as 3.5 billion pounds ($5.4 billion) in loans for its British unit, Bloomberg reported, citing six sources with knowledge of the matter.

Texas Instruments said weaker-than-expected orders from one mobile phone customer, identified as Nokia by some analysts, caused second-quarter revenue to miss Wall Street forecasts.

High-speed Internet providers are expected to get a subtle rebuke from U.S. regulators this week when a report omits language that has previously said they are rolling out broadband to all areas in a reasonable and timely fashion.

Goldman Sachs executive Fabrice Tourre denied fraud and other accusations by U.S. regulators for his role in marketing a subprime mortgage product and asked a court on Monday to dismiss the case.

Facebook Inc on Monday began its defense against claims that the most basic functions of its hugely popular website infringe a patent held by a little-known company.