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Gold pulls back from 4-week high as U.S. stocks rebound

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Investing.com -

Investing.com - Gold futures came off the highest levels of the session during U.S. morning trade on Tuesday, as U.S. stock markets rebounded from a three-day rout.

On the Comex division of the New York Mercantile Exchange, gold for December delivery traded at $1,232.80 a troy ounce during morning hours in New York, up $2.70, or 0.22%.

Comex gold prices rallied to a session high of $1,238.50 earlier, a level not seen since September 17.

Futures were likely to find support at $1,205.10, the low from October 8, and resistance at $1,243.20, the high from September 16.

Also on the Comex, silver for December delivery tacked on 6.3 cents, or 0.36%, to trade at $17.40 a troy ounce.

The S&P 500 and Dow Jones were on track to snap their worst three-day loss since November 2011 on Tuesday, as investors shifted their focus away from global growth concerns and toward corporate earnings.

Gold prices have been well-supported in recent sessions as ongoing concerns over the global economic outlook and losses in equity markets supported demand for safe haven assets.

Meanwhile, gold traders continued to speculate over the timing of a rate hike in the U.S. after the minutes of the Federal Reserve's September meeting released last week showed that some officials were concerned over the impact of the stronger dollar on global growth and the outlook for U.S. inflation.

The minutes prompted investors to trim back expectations for an earlier-than-expected hike in U.S. interest rates.

Lower interest rates can give gold a lift, as it decreases the relative cost of holding on to the metal, which doesn't offer investors any similar guaranteed payout.

Elsewhere in metals trading, copper for December delivery picked up 2.8 cents, or 0.93%, to trade at $3.069 a pound.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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