Gold futures trimmed losses but still ended lower on Monday, as risk-averse investor sentiment and a tumbling Chinese equities market prompted selling in bullion and other commodities.

Silver, meanwhile, turned higher due to strong demand from Asia. Silver, which is largely an industrial metal, has recently outperformed gold on the back of better economic sentiment.

Alexandria Minerals Corporation reported today that new high grade gold mineralization has been discovered during a summer surface sampling programme on its JoannesTownship claims, 20 km east of Noranda and 60 km west of Val d'Or, Quebec.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said holdings stood at 1,061.83 tonnes as of Aug. 31, flat from the previous business day.

Gold has historically risen in the month of September on the back of strong global jewelry demand, it could be challenging this year due to the economic slowdown and the high price of bullion.

Holdings of the world's largest silver-backed ETF, the iShares Silver Trust, also fell almost 82.6 tonnes, or 1 percent, last week.

The yen held firm on Tuesday, having hit seven-week highs in the previous session, while high-yielding currencies like the Australian and New Zealand dollars were also strong ahead of a rate decision in Australia.

We may witness a weakness in the dollar in today’s session on the back of improvement in risk appetite followed by strong manufacturing data from the U. S. The gold prices may take support from this development. We expect gold prices to trade firm during the day. Silver looks good for the day and may rise in line with other industrial metals.