Gold futures settled higher on Tuesday, gaining for a third straight session.
Gold found some support after yields on 10-year U.S. Treasury Note dropped from a sixteen-year high, dropping to 4.301% before recovering to around 4.315%.
The dollar’s recovery from lower levels limited the yellow metal’s upside.
The dollar index, which dropped to 103.01 in the Asian session, climbed to 103.72 around mid morning and despite paring some gains subsequently, remained positive at 103.54 with a gain of nearly 0.25%.
Gold futures for December ended higher by $3.00 or about 0.2% at $1,926.00 an ounce.
Silver futures for September ended up by $0.110 at $23.450 an ounce, while Copper futures for September settled at $3.7570 per pound, gaining $0.0385.
Investors look ahead to the symposium at Jackson Hole in Wyoming. The symposium will feature meetings by global central bank leaders as well as a speech by Federal Reserve Chair Jerome Powell that could impact the outlook for interest rates.
The CME FedWatch tool currently shows a probability of 15.5% for a rate hike of 25 basis points in the review due on September 20, versus 14% a day earlier. The probability for a quarter-point rate hike in November is however higher at 39.9%, rising from 38% a day earlier.
On the U.S. economic front, the National Association of Realtors released a report showing existing home sales in the U.S. slumped by much more than expected in the month of July.
NAR said existing home sales tumbled by 2.2% to an annual rate of 4.07 million in July after plunging by 3.3% to an annual rate of 4.16 million in June. Economists had expected existing home sales to edge down to an annual rate of 4.15 million.
Existing home sales decreased for the fourth time in the past five months, falling to their lowest annual rate since hitting 4.00 million in January.
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