Gold rises in Europe

Gold rose to its highest in more than three-months on Tuesday, as the dollar weakened and global stock markets tumbled, with rising political and economic uncertainties adding to the bullion's appeal. Palladium soared to a record high, with additional support from expected renewed demand from the Chinese automotive sector.
Spot gold was up 0.8 percent at $1,231.26 an ounce at 12:57 p.m. EDT (1457 GMT), having touched its highest since July 17 at $1,239.68. US gold futures rose 0.8 percent to $1,233.90, also helped by positive currency fundamentals as the dollar turned lower.
"It's the sell-off in the stock markets today and a weaker dollar which is helping gold prices," said INTL FC Stone analyst Edward Meir. "The main things to watch on gold is the turbulence in the equity markets, especially if it is sustained. If you get continued declines like this, gold should pick-up... $1,260 is the next resistance level on the charts."
Gold prices have gained more than 6 percent after falling in mid-August to their lowest since January 2017 at $1,159.96 an ounce. "Gold is supported by rising risk aversion washing through the markets and that is reflected in falling equity markets worldwide," said Societe Generale analyst Robin Bhar.
Wall Street followed a slide in European and Asian stocks, pressured by disappointing corporate earnings, Saudi Arabia's diplomatic isolation and a brewing spat over Italy's finances. The dollar also eased slightly, adding further support to gold.
On Monday, holdings at the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.3 percent to 747.88 tonnes. Investors consider gold a safe store of value during times of economic and political uncertainty. Meanwhile, palladium was up 0.2 percent at $1,124.40 an ounce. Used mainly in emissions-reducing autocatalysts for vehicles, palladium has gained some 7 percent so far this year to hit a record $1,150.50 an ounce, about $100 away from the price of gold.
A combination of factors, from tight supplies and large deficits to resurgent interest from speculative investors, has kept the platinum group metal (PGM) on the boil. Among other precious metals, silver rose 0.8 percent to $14.72, while platinum was up 1.4 percent at $831.30.