Investing.com - Gold prices declined on Tuesday, as the metal’s safe-haven appeal was dampened amid a recovery in global equity markets.
Chinese stocks markets recovered in choppy trade on Tuesday, as the yuan stabilized for the third straight day.
Meanwhile, European shares rallied, with Germany’s DAX rising more than 2% as investors chose to ignore the downward trend in oil futures.
Elsewhere, U.S. stock futures were up between 0.8% and 0.9%, suggesting a strong open on Wall Street later in the day.
Gold for February delivery on the Comex division of the New York Mercantile Exchange shed $8.80, or 0.8%, to trade at $1,087.40 a troy ounce as of 13:40 GMT, or 8:40AM ET. A day earlier, prices dipped $1.70, or 0.15%. The precious metal rallied to a nine-week high of $1,113.10 on January 8.
Despite recent losses, gold is up almost 3% since the start of the year as safe-haven demand has been boosted amid a global stock market rout, worries over the Chinese economy and heightened geopolitical tensions.
The recent turmoil in global financial markets added to skepticism over the Federal Reserve's ability to raise interest rates as much as it would like this year.
Also on the Comex, silver futures for March delivery inched down 10.1 cents, or 0.73%, to trade at $13.76 a troy ounce during morning hours in New York.
Elsewhere in metals trading, copper futures fell to a new six-year low on Tuesday, as investors continued to cut holdings of the red metal amid persistent worries about future demand from top consumer China.
Prices of the red metal are down nearly 8% so far in 2016 as a meltdown on China’s stock market and a rapid depreciation of the yuan rattled investor sentiment.
The Asian nation is the world’s largest copper consumer, accounting for nearly 45% of world consumption.