• Gold held steady on Tuesday after rising over one percent in the previous session, supported by safe-haven demand amid rising tensions surrounding North Korea and as the dollar eased from near three-week highs.
Spot gold was nearly unchanged at $1,310.61 per ounce at 0339 GMT, not far from Monday’s high of $1,311.50, when it marked its biggest intra-day percentage gain since Sept. 7.
U.S. gold futures for December delivery rose 0.2 percent to $1,314.30 per ounce.
• “The sharp sell-out in the equity market and rising risk aversion (are driving gold prices),” said Richard Xu, a fund manager at China’s biggest gold exchange-traded fund, HuaAn Gold.
“Chinese real estate developers getting hit pretty badly (on Monday) because of the curbing of property sales and the downgrade of China’s sovereign rating are also causing people to rethink their risky positions,” Xu said.
• “Gold will continue to be headline-driven in the short term,” said Jeffrey Halley, a senior market analyst with OANDA.
• Investors also awaited a speech on “inflation, uncertainty, and monetary policy” by U.S. Federal Reserve Chair Janet Yellen, in Cleveland at 1645 GMT.
• Spot gold may test a support at $1,252 in three months, a break below which could trigger a further drop towards the next support at $1,174, Reuters technical analyst Wang Tao said.
• In other precious metals, silver was up 0.1 percent at $17.19 per ounce. In the previous session, prices rose over 1 percent to register their biggest intra-day percentage gain since Sept. 7.
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