Spot Gold Rises as Dollar Erases Gains, U.S. Factory Gauge Slips

  • Dollar fades, reviving demand for gold as alternative asset
  • ISM factory index fell to the lowest level since January 2021
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Gold rebounded as the dollar pared gains and a U.S. manufacturing gauge fell short of economists’ expectations.

An index of the dollar gave up early gains of as much as 0.3%, boosting bullion’s appeal as an alternative asset. The Institute for Supply Management’s measure of December factory activity fell to the lowest level since January 2021, according to data released Tuesday.