Gold prices fall from near-record highs as stock markets rise

Gold prices dipped from near record highs in Asian trade on Tuesday as stock markets rebounded, reducing demand for safe havens, though weak sentiment kept the yellow metal relatively buoyant.

On Monday, gold rocketed to near-record highs as a meltdown in global equity markets pushed traders into safe havens like metal and the yen. Increased forecasts of a US recession and interest rate cuts boosted gold prices while weakening the currency.

Anticipation of Iran and Hamas' vengeance against Israel for the assassination of a Hamas commander in Tehran further fueled safe haven demand.

Spot gold declined 0.3% to $2,402.57 an ounce, while December gold futures fell 0.1% to $2,443.0 an ounce at 01:50 ET (05:50 GMT). Spot prices had risen as high as $2,460 an ounce earlier this week.

Gold falls as the currency stabilizes, and stocks recover.
The yellow metal fell slightly on Tuesday as the dollar recovered from an almost seven-month low.

A dramatic comeback in equities markets also reduced safe haven demand for gold, as riskier assets benefited from a run of bargain buying.

However, gold kept the most of its recent gains, as the anticipation of reduced interest rates fueled demand for the yellow metal. Lower interest rates benefit gold because they reduce the opportunity cost of investing in the commodity.

Other precious metals profited from this trade, but have suffered significant losses in subsequent sessions due to their lower safe haven appeal than gold.

Platinum futures were steady at $918.85 an ounce, while silver futures fell 0.7% to $27.020 an ounce.

Copper nurses face huge layoffs amid recession fears.
Copper prices fell on Tuesday, extending their losses amid fears of a US recession and uncertainty about China.

Benchmark copper prices on the London Metal Exchange declined 0.6% to $8,806.50 per tonne, while one-month copper futures dropped over 1% to $3.9660 per pound.

Following a spate of disappointing labor market readings and signs of weakening manufacturing activity, markets became concerned about a possible U.S. recession.

Weak industrial data from China exacerbated these concerns, and copper suffered as global demand slowed.

This week's focus is on further economic readings from China, particularly trade and inflation figures, which are due later this week.