Investing.com - Gold futures tumbled below the $1,200-level in Europe trade on Tuesday, as safe-haven buying in the precious metal dried up amid a recovery in global equity markets.
Gold for April delivery on the Comex division of the New York Mercantile Exchange fell to an intraday low of $1,191.50 a troy ounce, before paring some losses to trade at $1,199.80 by 08:45GMT, or 3:45AM ET, down $39.60, or 3.2%.
There was no settlement in Comex gold prices on Monday, due to the President’s Day holiday in the U.S.
Prices of the yellow metal soared to a one-year high of $1,263.90 last Thursday, boosted by a flight to safety. Futures jumped $65.60, or 7.02%, last week, the best weekly performance since December 2008.
Gold has been well-supported in recent weeks amid indications global economic and financial headwinds could make it tough for the Federal Reserve to raise interest rates as much as it would like this year.
Market participants have all but priced out any rate hikes this year, while the Fed is anticipating four more. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.
Gold is up nearly 13% so far this year as investors seek safe havens in the face of mounting instability in other financial markets.
In the week ahead, market players will be turning their attention to Wednesday’s minutes of the Fed’s latest policy meeting for fresh indications on whether the U.S. central bank will raise interest rates at all this year.
Investors will also be looking ahead to U.S. data on inflation for further clues on the strength of the economy.
Also on the Comex, silver futures for March delivery tumbled 56.5 cents, or 3.58%, to trade at $15.22 a troy ounce during morning hours in London.
Elsewhere in metals trading, copper futures jumped more than 2%, amid mounting expectations for further stimulus measures from central banks in Europe and Asia.