Investing.com - Gold futures hit a fresh nine-month low on Tuesday, as a broadly stronger U.S. dollar dampened the appeal of the precious metal.
On the Comex division of the New York Mercantile Exchange, gold for December delivery traded at $1,208.00 a troy ounce during U.S. morning hours, down $10.80 from a closing price of $1,218.80 on Monday.
Comex gold futures hit a session low of $1,205.00 earlier, a level not seen since January 2.
Futures were likely to find support at $1,204.30, the low from January 2, and resistance at $1,232.70, the high from September 26.
Also on the Comex, silver for December delivery tumbled 31.5 cents to trade at $17.25 a troy ounce, the weakest level since May 2010.
Gold futures are on track for a 9.2% drop in the three months ending September 30, while silver prices are almost 19% lower since the end of June, amid speculation a strengthening economic recovery in the U.S. would prompt the Federal Reserve to hike rates sooner and faster than previously expected.
Gold and silver cost money to store and struggles to compete yield-bearing assets when interest rates are on the rise.
Meanwhile, the dollar index has gained nearly 7.5% this quarter, the most since the 2008 global financial crisis.
A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Elsewhere in metals trading, copper for December delivery lost 3.0 cents to trade at $3.026 a pound.
The industrial metal lost 5.4% in the third quarter amid indications China's economy is losing momentum and as a broadly stronger U.S. dollar dampened the appeal of dollar-denominated commodities.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption.