Gold Price Hugs USD1270 As Dow Threatens 22,000

London (Aug 1)  Gold futures were flat Tuesday morning, clinging to July's gains amid a weak dollar and lingering concerns about the global economy.

Still, gold's upside has been capped by surging stocks. The Dow Jones Industrial Average is set to crack 22,000 for a new record high.

Gold was down 90 cents at USD1272.50 an ounce, having touched its highest since June last week. Silver leveled off at USD16.72 an ounce.

The Federal Reserve's closely watched PCE deflator reading for June is out at 8:30 a.m. Eastern Time, and updates on personal income and consumer spending for June are due simultaneously.

PMI manufacturing Index for July will be released at 9.45 am ET, and the Commerce Department's Construction Spending for June will be revealed at 10.00 am ET.

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