Gold Rebounds From 1-week Low, Settles Modestly Higher

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Gold prices edged higher on Tuesday, after declining to a one-week low on Tuesday, as traders shunned sluggish equities amid mounting concerns over a budget showdown between Italy and the European Union, and on worries about a slowing Chinese economy.

Stock markets in Asia drifted lower on Tuesday after China allowed its currency to slip past a psychological bulwark and the International Monetary Fund lowered its forecast for Chinese economic growth.

European markets recovered after a weak start, but buying interest was mostly subdued in the region.

The IMF has lowered its forecast for Chinese economic growth in 2019 to 6.2% from 6.4%, citing "negative effect of recent tariff actions."

Gold futures for December ended up $2.90, or 0.2%, at $1,191.50 an ounce. On Monday, gold futures ended down $17.00, or 1.4%, at $1,188.60 an ounce, the lowest settlement since September 27.

Silver futures for December settled at $14.400 an ounce, gaining $0.071 for the session.

Copper futures for December ended up $0.0395, at $2.8065 per pound.

Treasury yields rose with the benchmark U.S. 10-year note hitting a fresh seven-year high last week and the 30-year Treasury bond climbing to a four-year peak. With an interest rate hike very likely in December and more increases on the cards in the coming year, risk-free bonds were being lapped up by traders.

However, after moving higher initially today, treasuries pared some gains before edging up slightly.
 
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