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Gold rose to a three-week high on Tuesday as the dollar reversed gains, global stocks fell and investors assessed the impact of China’s move to devalue its currency and prop up its economy.
China’s rate decision triggered a sharp but short-lived retreat in gold to a session low of $1,093.25 an ounce.
Spot prices rebounded to $1,107.31 an ounce . US gold for December delivery rose to $1,109.10.
Spot platinum fell 0.4 per cent to $980.49 and palladium gained 0.3 per cent to $609.22. Silver was down 0.1 per cent at $15.19.
Industrial metals slumped, with aluminium falling to a six-year low, after China devalued its currency in a move that supports exports and makes imports more expensive.
Aluminium for three-month delivery dropped as much as 2.8 per cent to $1,573.50 a tonne, the lowest since July 2009.
Copper fell 2.5 per cent to $5,178, trading near a six-year low.
Tin led declines on the LME, falling 3.6 per cent.
Zinc lost as much as 2.4 per cent to the lowest since July 2013.
Oil fell after the biggest rally in a month in New York as a recovery in Iranian production pushed OPEC supplies to the highest in more than three years. West Texas Intermediate futures declined as much as 2.6 per cent.
Iran increased output by 32,300 barrels a day in July to 2.86 million a day, the highest since June 2012, according to data OPEC compiles from secondary sources.
The Organisation of Petroleum Exporting Countries raised output by 100,700 barrels a day to 31.5 million last month, the most since June 2012, the group said in its monthly report, citing external sources.
Brent for September settlement dropped to $49.45 a barrel on the ICE Futures Europe exchange. West Texas Intermediate for September delivery fell to $43.79 a barrel on the New York Mercantile Exchange.
The European benchmark crude traded at a premium of $5.63 to WTI.
Bullion prices (in ₹)
Mumbai: Silver spot 35,740/kg; standard gold 25,250/10 gm; pure gold 25,400/10 gm.(Rates included VAT)
Chennai: Bar silver 35,560/kh; standard gold 25,680/10 gm; retail silver 38.05/gm; 22 carat retail ornament gold 2,414/gm.
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