London shares started Tuesday on the back foot after disappointing US economic data and as UK inflation rose slightly.
The FTSE 100 Index fell 2.49 points to 6547 in the first hour of trading as Empire State manufacturing data came in well short of hopes on Monday.
Together with last week’s devaluation of the Chinese yuan, the news sparked speculation that the US Federal Reserve may not hike rates as soon as some expected.
Gold prices lifted by 0.05% to US$1,119 an ounce as investors sought a haven from stocks and the dollar.
Precious metal miners benefited with Randgold Resources (LON:RRS) advancing 25p to 4008p and Mexican silver miner Fresnillo (LON:FRES) gleaming a penny to 672p.
But oil stocks were in the doldrums again as the price of a barrel of US light crude backtracked 0.7% to US$41.58 and Brent crude fell 0.6% to US$48.46.
BP (LON:BP.) leaked 1.65p to 376.5p, Royal Dutch Shell (LON:RDSB) lost 11p to 1801p and BG Group (LON:BG.) deflated 4p to 1073p.
The UK Consumer Prices Index (CPI) grew by 0.1% in the year to July 2015, up from 0.0% in the year to June 2015.
Nick Dixon, Investment Director at Aegon UK, said: “Inflation is being held back by the strong pound and lower oil prices, and is likely to remain minimal in the short term.
"The inflation figures also raise probability of the first rate hike since 2007 being after Christmas, not before.”
Analyst Craig Erlam at Oanda said: “The recent collapse in commodity prices is likely to apply further downward pressure on inflation in the months ahead.”
In a quiet session for corporate news, Persimmon Homes (LON:PSN) retreated 26p to 2095p as traders digested the latest set of profit figures from the housing sector.
Persimmon posted a 31% rise in half-year profits but cautioned about ongoing obstacles to growth in the market including a shortage of skilled labour.
Oil services supplier Wood Group (LON:WG.) shed 12.5p to 567p as it outlined efforts to offset the impact of industry cutbacks due to falling oil prices.
Newspaper distributor and airport ground handler John Menzies (LON:MNZS) backtracked 37p to 455.5p as aviation profits took a hit from restructuring costs and 2014 contract losses.