LONDON: Gold fell for a third straight session on Tuesday as a rebound in European and US stock markets undermined the metal’s appeal as a haven from risk, and as the dollar strengthened against a currency basket.
The metal retreated from a high of $1,099.15 as European stocks rebounded from an early three-month low, Wall Street opened higher and the dollar index rose 0.3 per cent. The rise in stocks suggested risk appetite is recovering after last week’s rout.
Spot gold was down 0.8pc at $1,085.55 an ounce at 1452 GMT, while US gold futures for February delivery were down $11.00 an ounce at $1,085.20.
“Gold was down yesterday after stocks came back, and down again today,” INTL FCStone analyst Edward Meir said.
Holdings of the world’s largest gold-backed exchange-traded fund, New York-listed SPDR Gold Shares, rose 2.1 tonnes on Monday, data from the fund showed.
Among other precious metals, palladium was the biggest faller, sliding 5pc to a 5-1/2 year low of $449.55 an ounce in early trade. It was later at $473.50 an ounce, down 1.3pc.
Silver was down 0.4pc at $13.80 an ounce, while platinum was down 0.5pc at $840.85 an ounce.
Courtesy : Dawn News