Investing.com - Gold inched up on Tuesday, but remained not far above the prior session's five-and-a-half-year low as investors awaited the release of revised U.S. third quarter economic growth data later in the day for a fresh reading on the strength of the economy.
Gold for December delivery on the Comex division of the New York Mercantile Exchange tacked on $5.70, or 0.53%, to trade at $1,072.50 a troy ounce during European morning hours. A day earlier, prices fell to $1,065.00, not far from last week's low of $1,062.00, a level not seen in almost six years.
The U.S. is to release preliminary figures on third quarter economic growth at 8:30AM Eastern Time Tuesday. The data is expected to show that the economy expanded 2.1% in the three months ended September 30, compared to last month's advance estimate of 1.5%.
Most Federal Reserve officials believe there is a strong case to begin raising interest rates at the central bank's December 15-16 meeting, as long as U.S. economic data does not disappoint in the coming weeks.
Gold futures are down more than 6% so far this month amid mounting expectations the Fed will raise rates for the first time in nearly a decade at its mid-December meeting.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
The U.S. dollar hovered near eight-month highs against a basket of six other major currencies, weighing further on metal prices. Dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.
Meanwhile, silver futures for December delivery rose 8.3 cents, or 0.59%, to trade at $14.11 a troy ounce. On Monday, prices hit $13.85, the weakest since August 2009.
Elsewhere in metals trading, copper prices traded not far above the prior session's six-year low on Tuesday as expectations of higher interest rates in the U.S., a broadly stronger U.S. dollar and slower global economic growth, especially in China, weighed.
Prices of the red metal are down more than 12% so far this month as persistent worries about future demand from top consumer China and a stronger greenback slammed commodities.