Investing.com - The rout in equities and oil is "costing" gold in a peculiar way.
While stocks are a contrarian bet to gold, higher oil prices typically aid the rise of the yellow metal, seen as a hedge against inflation.
But with crude oil oil prices tanking 7% on Tuesday and stocks tumbling simultaneously, investors were cashing out of relatively-stable gold to cover losing positions in the other assets.
"Gold rally temporarily on hold as rush to cash in and cover equity and crude oil markets has overshadowed bullion-related portfolios," George Gero, precious metals analyst at RBC Wealth Managerment in New York, said.
COMEX gold for December delivery settled down $4.10, or 0.3%, at $1,221.20 per troy ounce.
After a test to its crucial $1,200 support, gold has been propped up again this week by concerns about Brexit and British Prime Minister Theresa May's hold on power, as well as skepticism about a US-China trade deal happening on the sidelines of the G20 meeting.
Last week, December gold rose 1.4% for its best weekly gain in five as hedgers rushed to the relative safely of bullion due to a growing risk-off environment.
The dollar index, another contrarian bet to gold, was up 0.7% at 96.72.
Among other precious metals on COMEX, silver slipped 0.8% to $14.29 per ounce.
Palladium slid 1.6 % to $1,222.60.per ounce, while sister metal platinum fell 1.6% to $844.30.
In base metals, COMEX copper declined 1.5% to $2.76 per pound.