Investing.com - Gold prices dipped modestly on Tuesday to hold near the lowest level in more than four years as optimism over the strength of the U.S. economy and growing expectations that the Federal Reserve will begin to raise rates sooner than previously thought weighed.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at $1.167.60 a troy ounce during U.S. morning hours, down $2.20, or 0.19%.
Prices slumped to $1,160.50 on October 31, a level not seen since July 2010.
Futures were likely to find support at $1,156.75, the low from July 28, 2010, and resistance at $1,173.40, the high from November 3.
Also on the Comex, silver futures for December delivery lost 23.3 cents, or 1.44%, to trade at $15.96 a troy ounce.
A recent batch of better than expected U.S. economic data underlined the view that the economy was gaining momentum and that interest rates could rise sooner rather than later.
Gold, which yields nothing and costs money to hold, is seen as a less attractive investment during times of rising interest rates.
Elsewhere in metals trading, copper for December delivery tumbled 6.1 cents, or 1.98%, to trade at $3.004 a pound amid ongoing concerns over the health of the global economy.
The European Union lowered its 2014 growth forecast for the euro zone earlier Tuesday, citing the tensions in Ukraine and the Middle East along with a lack of investment.
The agency said it now expects gross domestic product in the single currency bloc to grow 0.8% this year, down from 1.2% growth it forecast this spring. In 2015, the euro zone economy will likely grow 1.1%, down from a previous forecast of 1.7%.
Copper is sensitive to the economic growth outlook because of its widespread uses across industries.
Europe as a region is third in global demand for the industrial metal.