Investing.com – Gold futures regained strength on Tuesday, bouncing off a four-week low as the U.S. dollar weakened slightly while investors continued to monitor developments surrounding the U.S. and the euro zone’s debt woes.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,693.75 a troy ounce during early European morning trade, climbing 0.9%.
It earlier rose by as much as 1% to trade at a daily high of USD1,694.65 a troy ounce.
Gold’s gains came as the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, declined 0.25% to trade at 78.25.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Some bargain buying also lent support after prices plunged nearly 2.7% on Monday to settle at the lowest level since late October.
Market sentiment was rattled after a U.S. congressional "super committee” failed to agree on a package of measures to cut USD1.2 trillion off the U.S. deficit over the next 10 years.
However, ratings agency Fitch said late Monday that the breakdown in talks was likely to lead to a revision of the rating outlook to Negative, rather than a downgrade.
Adding to investor jitters, Moody's Investors Service said Monday that a rise in French government debt yields and weaker growth prospects could be negative for the outlook on the country's credit rating.
Gold is often considered a refuge from financial risk, but prices can tumble amid a market-wide selloff as traders sell their gold positions to raise cash and cover losses in other asset classes.
Despite the recent slump, French lender BNP Paribas expects gold prices to retest new highs by the end of the year, citing its “safe haven status in an environment of heightened uncertainty.”
“In the near term, gold should continue to outperform the rest of the precious metals complex,” the lender said in a report.
Elsewhere on the Comex, silver for December delivery jumped 1.6% to trade at USD31.60 a troy ounce, while copper for December delivery rose 1.75% to trade at USD3.361 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,693.75 a troy ounce during early European morning trade, climbing 0.9%.
It earlier rose by as much as 1% to trade at a daily high of USD1,694.65 a troy ounce.
Gold’s gains came as the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, declined 0.25% to trade at 78.25.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Some bargain buying also lent support after prices plunged nearly 2.7% on Monday to settle at the lowest level since late October.
Market sentiment was rattled after a U.S. congressional "super committee” failed to agree on a package of measures to cut USD1.2 trillion off the U.S. deficit over the next 10 years.
However, ratings agency Fitch said late Monday that the breakdown in talks was likely to lead to a revision of the rating outlook to Negative, rather than a downgrade.
Adding to investor jitters, Moody's Investors Service said Monday that a rise in French government debt yields and weaker growth prospects could be negative for the outlook on the country's credit rating.
Gold is often considered a refuge from financial risk, but prices can tumble amid a market-wide selloff as traders sell their gold positions to raise cash and cover losses in other asset classes.
Despite the recent slump, French lender BNP Paribas expects gold prices to retest new highs by the end of the year, citing its “safe haven status in an environment of heightened uncertainty.”
“In the near term, gold should continue to outperform the rest of the precious metals complex,” the lender said in a report.
Elsewhere on the Comex, silver for December delivery jumped 1.6% to trade at USD31.60 a troy ounce, while copper for December delivery rose 1.75% to trade at USD3.361 a pound.