Gold fell for a third consecutive session on Tuesday as a stern warning by the International Monetary Fund on global growth and worries about a slowing Chinese economy lessened bullion's appeal as an inflation hedge. A third straight day of decline sent gold well below an overbought level, and some analysts said the metal is due for a rebound because of money printing by central banks.
The relative strength index (RSI) fell below 60, under the 70 mark at which a market is generally considered overextended. Spot gold was down 0.5 percent at $1,764.84 an ounce by 2:39 pm (1839 GMT), even though the price was still within reach of its 11-month high at $1,795.69.
US COMEX gold futures for December delivery settled down $10.70 at $1,765 an ounce, with trading volume about 30 percent below its 30-day average, preliminary Reuters data showed. Among other precious metals, silver eased 0.1 percent at $33.91 an ounce. Platinum inched down 0.1 percent on the day to $1,685.10 an ounce. Palladium eased 20 cents at $653.90 per ounce.
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