Investing.com – Gold futures edged lower on Tuesday, pulling back from a 12-day high ahead of a vote by Slovakia on expanding the powers of the euro zone’s bailout fund, while strong physical demand in Asia provided support.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,663.25 a troy ounce during late Asian trade, slumping 0.45%.
It earlier fell by as much as 0.6% to trade at a daily low of USD1,660.85 a troy ounce.
Investors remained cautious ahead of a vote by Slovakia on expanding the powers of the euro zone's EUR440 billion bailout fund, the European Financial Stability Facility.
The country is the last of the 17-member bloc yet to vote on the EFSF, which needs to be approved by all euro zone states for it to go active.
The Freedom and Solidarity Party, led by Parliamentary Speaker Richard Sulik, previously said his party will not support boosting the EFSF if its conditions are not accepted by coalition partners.
The U.S. dollar was higher against most of its major counterparts, as risk appetite weakened ahead of the closely-watched vote.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.23% to trade at 78.05.
Gold prices often move inversely to the U.S. dollar, as gold becomes more expensive for buyers using other currencies.
Meanwhile, strong physical demand for the precious metal in Asia supported prices. In top buyer India, consumers increased purchases of bullion ahead of the gold-buying wedding and festival season due to start in late October.
London-based bullion research group Sharps Pixley said physical sales in China during the Golden Week holiday last week were 50% higher than levels seen a year earlier, in spite of spot prices that were around USD300 per ounce higher.
Elsewhere on the Comex, silver for December delivery fell 0.7% to trade at USD31.74 a troy ounce, while copper for December delivery tumbled 2.37% to trade at USD3.288 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,663.25 a troy ounce during late Asian trade, slumping 0.45%.
It earlier fell by as much as 0.6% to trade at a daily low of USD1,660.85 a troy ounce.
Investors remained cautious ahead of a vote by Slovakia on expanding the powers of the euro zone's EUR440 billion bailout fund, the European Financial Stability Facility.
The country is the last of the 17-member bloc yet to vote on the EFSF, which needs to be approved by all euro zone states for it to go active.
The Freedom and Solidarity Party, led by Parliamentary Speaker Richard Sulik, previously said his party will not support boosting the EFSF if its conditions are not accepted by coalition partners.
The U.S. dollar was higher against most of its major counterparts, as risk appetite weakened ahead of the closely-watched vote.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.23% to trade at 78.05.
Gold prices often move inversely to the U.S. dollar, as gold becomes more expensive for buyers using other currencies.
Meanwhile, strong physical demand for the precious metal in Asia supported prices. In top buyer India, consumers increased purchases of bullion ahead of the gold-buying wedding and festival season due to start in late October.
London-based bullion research group Sharps Pixley said physical sales in China during the Golden Week holiday last week were 50% higher than levels seen a year earlier, in spite of spot prices that were around USD300 per ounce higher.
Elsewhere on the Comex, silver for December delivery fell 0.7% to trade at USD31.74 a troy ounce, while copper for December delivery tumbled 2.37% to trade at USD3.288 a pound.