Gold was steady in Asia after rising 0.7% on Monday as data showed weaknesses in the US economy, increasing speculation the Federal Reserve is set to pause its rate-hike cycle.

Bullion investors are once again focused on US monetary policy following the resolution of the debt-ceiling standoff. Treasury yields and the dollar weakened on Monday after figures showed the US service sector nearly stalled in May as business activity and orders dried up, while a measure of prices paid slid to a three-year low.

That bolstered views the Fed may hold rates steady in June, while staying open to more hikes if need be. Higher rates are generally negative for non-interest-bearing gold.

Spot gold was little changed at $1,961.06 an ounce as of 8:29 a.m. in Singapore. The Bloomberg Dollar Spot Index was flat. Silver, palladium and platinum were all steady.

Source : Bloomberg