NEW YORK: Gold prices rebounded from a near two-week low hit earlier on Tuesday, after a sell-off in stock markets prompted investors to seek refuge in the safe haven metal.
Spot gold rose 0.4% to $1,936.87 per ounce by 2:29 p.m. EDT (1829 GMT) after falling as much as 1.2% to $1,906.24. US gold futures settled up 0.5% at $1,943.20.
"We saw a bounce off the lows in gold after a sharp drop in US equities sparked some safe haven buying. People are confused, they don't know where the bottom is at in the equity markets right now," said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.
Global equity markets and oil prices tumbled after a sharp sell-off in technology stocks, Brexit uncertainty and on concerns over flare-ups in coronavirus cases.
Gold's gains came despite a stronger dollar, which rose 0.7% against rivals.
Investors are now awaiting an ECB policy meeting due on Thursday, while the US Federal Reserve's next meeting is scheduled for next week.
Bullion has risen over 27% so far this year, after central banks globally flooded markets with extraordinary stimulus to offset the economic damage inflicted by the coronavirus pandemic, as it is considered a hedge against inflation and currency debasement.
Elsewhere, silver fell 0.8% to $26.78 per ounce and platinum was up 0.5% to $903.33, while palladium dipped 0.6% to $2,280.97.
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