Gold price steadies after briefly topping $2,000

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Gold prices steadied on Tuesday with the dollar erasing losses and a US report adding to signs of a recovery in global manufacturing, pulling the precious metal down from a two-week high.

Spot gold dipped by less than 0.1% to $1,967.59 per ounce as of 3:30 p.m. EDT, having earlier hit its highest since August 19 at $1,992.15.

US gold futures declined 0.2% to $1,973.40 per ounce after crossing the $2,000 per ounce mark earlier in the session.

The dollar recovered on data showing US manufacturing expanded in August at the fastest pace since late 2018, reducing demand for bullion as an alternative asset.

The manufacturing report “confirms that the US economic recovery is real and hence we experienced a bounce in the dollar index,” Naeem Aslam, chief market analyst at Ava Trade, said in an interview with Bloomberg.