Gold rises but remains near multi-year lows with U.S. GDP in focus; Iron ore sinks

On Tuesday gold prices slightly recovered but remained near the prior session's five-and-a-half-year low as investors anticipated 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.

Comex gold for December delivery rose 0.72%, to trade at $1,074.50 a troy ounce.

On Monday, 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.

Gold futures are down more than 6% so far this month amid growing expectations the U.S. central bank will raise rates for the first time in nearly a decade at its mid-December meeting.

The U.S. is to release preliminary figures on third quarter economic growth at 8:30AM Eastern Time Tuesday. The report is expected to show that the economy grew 2.1% in the three months ended September 30, compared to last month's advance estimate of 1.5%.

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.

Platinum futures for January delivery lost 0.42% to trade at $843.80, while palladium for delivery in March was at $543.60, up 0.33%.

Copper prices rose 0.53% to trade at $2.031. They were still not far above the prior session's six-year low on Tuesday as expectations of higher borrowing costs in the U.S., a stronger greenback and slower global economic growth, especially in China, pressured the metal.

Prices of the red metal have lost over 12% so far this month as persistent worries about future demand from top consumer China and a stronger greenback slammed commodities.

Also Tuesday, iron ore sank to the lowest level in at least six years amid speculation that mills in China are reducing steel output, hurting demand for the raw material while supplies from the biggest miners expand.

Ore with 62% content delivered to Qingdao fell 1.9 percent to $43.89 a dry metric ton, the lowest in daily data dating back to May 2009, according to Metal Bulletin Ltd. The commodity is headed for a third annual retreat, and Tuesday’s fall offset the previous trough of $44.59 set in July.