Spot Gold (GLD) Trade Fades; HSBC Cuts Forecast to $1,760/Oz, Sees Less Demand from India

Gold is trading slightly lower Tuesday afternoon as US investors are buying stocks following a better-than-expected reading on ISM manufacturing earlier.

While spot gold is down about 0.1 percent to $1,662.40 per ounce, the Dow last traded at 13,325, up more than 111 points from Monday's close.

Also affecting gold traders this afternoon, HSBC recently cut its yearly forecast on the commodity by $90 to $1,760/oz. The firm noted lower demand from India, where gold jewelry purchases have been strong. Investors may also be pricing in expectations for reduced financial stimulus moving forward.

The GLD (NYSE: GLD) ETF is down 0.3 percent to $161.35 at last check.

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