Gold Rebounds on Tuesday

Spot gold rose on Tuesday after two days of losses, recovering from an early dive below $1,200 an ounce, as a retreat in stock markets from earlier highs boosted interest in the metal as a haven from risk.

European shares dipped 0.3 percent, even as oil prices gave up early gains after an agreement among four top producers to freeze output was judged unlikely to have a big impact on a global glut of crude.

Spot gold was up 0.12 percent at $1,210.80 an ounce. It earlier fell as low as $1,190.40, having shed 2.3 percent on Monday, its biggest one-day loss since mid-July.

Gold hit a one-year high of $1,260.60 last week as worries over the global economy prompted heavy selling of assets seen as higher risk, such as stocks and cyclical commodities.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza