Gold prices decline
Gold fell nearly one percent on Tuesday as a drop in oil prices on healthy fuel inventories in the United States reduced the metal's appeal as a hedge against inflation, dealers said.The market ignored news that North Korea would conduct a nuclear test in the future, but safe-haven gold was expected to gain support from dollar weakness and seasonal physical buying in major gold consuming countries. "The market would be looking to external factors, especially the dollar, oil prices and global tension," said Matthew Turner, analyst at Virtual Metals. Gold was under pressure because of weaker oil prices and needed to regain $600 to rise further, he added. Spot gold slipped as low as $591.70 an ounce and was quoted at $592.80/593.80 by 0953 GMT, down from $597.50/598.25 late in New York on Monday. Gold hit a two-week high around $606 on September 28 on the back of a recovery in oil, before dropping again to track a weaker energy market and a firmer dollar. Oil eased below $61 a barrel, extending a 3 percent drop in the previous session as forecasts for a further build in fuel stocks in the United States offset slight cuts in Opec output.
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