After experiencing four straight days of selloffs, gold futures recovered from an early dip in the market on Tuesday. It was spurred as the European Commission slashed its growth forecasts and traders noted that the precious metal's recent trajectory was too negative.
Bullion for December delivery was down 0.2 percent early on Tuesday at $1,167.60 per ounce on Tuesday, according to Bloomberg. However, this came after an initial decline of 0.5 percent. When the EU adjusted GDP expectations downward from 1.2 percent in 2014 and 1.7 percent in 2015 to 0.8 percent and 1.1 percent, respectively, gold saw a speedy recovery of nearly 0.4 percent.
In further good news, gold for immediate delivery saw a direct increase, rising 0.3 percent to $1,168.85 an ounce. Still, gold futures are trading close to their lowest level in four years after a large fall of nearly 5 percent last week.
"This is a corrective bounce," Robin Bhar, an analyst at Societe Generale SA in London, told the news source in a phone interview. "There's clearly some bargain hunting."
Reuters reported that billion's recent break pushed it down to $1,161.25 on October 31, which was its lowest rate seen since July 2010. There are concerns that a lack of robust buying from major physical gold markets such as China and India, in addition to weak technical figures, could lead to further declines.
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