Prices of gold and other precious metals rebounded from a sharp selloff in the previous session on Tuesday as focus returned to persistent global risks that have propelled bullion to its strongest annual performance in more than four decades.
Spot gold was up 1.3% at $4,387.29 per ounce at 1127 GMT. On Monday it posted its biggest daily percentage loss in more than two months in a retreat from Friday’s record high of $4,549.71, which analysts blamed on profit taking.
U.S. gold futures were up 1.3% at $4,401.90.
“The selloff yesterday had the hallmarks of profit taking and repositioning ahead of the New Year.... buyers are likely returning as the structural conditions of this rally - a weaker U.S. dollar and ongoing geopolitical uncertainty - still remain,” said Zain Vawda, analyst at MarketPulse by OANDA.
Bullion has climbed 66% this year, its biggest annual gain since 1979, fuelled by monetary easing, geopolitical tensions, central bank buying and rising holdings in exchange-traded funds.
