Investing.com – Gold rebounded slightly Tuesday, as the recent jump in U.S. bond yields and persistent concerns over global growth sparked an investor flight toward safe-havens.
But futures for the yellow metal remained below the $1,200 level that’s critical to the confidence of gold bugs, raising questions on its potential upside after Monday’s 1.4% tumble, the sharpest selloff in a day since Aug. 13.
“While the gold market eventually rejected a large portion of the initial washout, the damage on the charts was significant and the tone of the market might be damaged so much that further liquidation is expected directly ahead,” ADM Investor Services said in its outlook on the precious metal.
Gold futures for December delivery were up $2.10, or 0.2%, at $1,190.70 per troy ounce by 1:48 PM ET (17:48 GMT) on the COMEX division of the New York Mercantile Exchange. It earlier settled the session at $1,191.15, up $2.90, or 0.2%, on the day.