· Gold on Tuesday rose above a seven-week low as the U.S. dollar came off its highs.
· Bullion was pressured earlier by strong U.S. economic data that reinforced expectations of another U.S. interest rate increase this year and pushed the dollar and U.S. bond yields higher.
· Spot gold was up 0.1 percent at $1,272.04 per ounce by 3:13 p.m. EDT (1913 GMT), after the dollar flattened and U.S. bond yields eased from earlier highs.
· Gold had earlier touched $1,267.76, its lowest since Aug. 15 and down more than 6 percent from a one-year high of $1,357.54 in early September.
· "The speculators don't want to take it below key levels, because of uncertainty of the next Fed chair and how inflation will play out after a potential December hike," said Ryan McKay, head of commodity strategy at TD Securities in Toronto, referring to the modest rebound in gold prices.
· U.S. gold futures for December delivery settled down $1.20, or 0.1 percent, at $1,274.60 per ounce, after hitting the lowest in nearly a month at $1,271.
· The CME's Fedwatch indicator showed markets were pricing in a 77 percent likelihood of a December rate rise after Monday's data showed a surge in U.S. manufacturing activity.
· U.S. and world stocks also rose to records as a positive global growth outlook encouraged investment in riskier assets.
· "The factors that pushed gold towards $1,360 in early September are now reversing," Julius Baer analyst Carsten Menke said.
Menke said he expected a strengthening dollar and normalization of speculative positioning to push gold to $1,200 an ounce by the end of the year.
· Silver was up 0.4 percent at $16.60 an ounce but still near its lowest since Aug. 9.
· Platinum was up 0.2 percent at $912.40 per ounce, after dipping to $902.40, the lowest since July 14.
· Palladium was up 0.8 percent at $916.60 per ounce, after hitting a two-week low at $904.00. It earlier slipped below platinum after reaching price parity for the first time in 16 years last week.
Reference: Reuters
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