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Metals Stocks: Gold trades at nearly 3-week low as dollar, stocks perk up

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Gold prices headed lower Tuesday as global stocks staged a rebound and the dollar strengthened, factors that helped to dull bullion’s appeal.

June gold GCM19, -0.52%  on Comex traded $4.90, or 0.4%, lower at $1,272.40 an ounce, after booking a modest rise on Monday. The day’s early trading put the yellow metal on pace to log its lowest settlement since May 2, according to FactSet data.

Gold’s gains had been supported by increased U.S.-China trade tensions and worries about other political uncertainties, including the threat of military escalation between Iran and the U.S. and a disorderly exit from the European Union by Britain.

“Despite fears of a trade war, Brexit uncertainty and the upcoming European election, investors’ appetite for safe haven assets remains moderate,” wrote Carlo Alberto De Casa, chief analyst at ActivTrades.

“From a technical point of view, a first positive signal would be a recovery to $1,290, while a fall below the recent low of $1,266 could open space for a further decline,” he wrote, in a daily research note.

The Dow Jones Industrial Average DJIA, -0.33% and the S&P 500 index SPX, -0.67%  were poised to advance, with equity markets in Europe, represented by the Stoxx Europe 600 Index SXXP, +0.57% up 0.6%, and China’s Shanghai Composite Index SHCOMP, +1.23%  up 1.2%.

Assets considered risky, such as stocks, appeared to gain some buoyancy after the U.S. Commerce Department said it would grant 90-day licenses for some companies to continue exporting to Huawei Technologies. That move provided some respite for stocks after the crackdown on the Chinese telecom prompted a retreat from U.S. chip manufacturers and the broader market on Monday. Huawei is viewed as one front of the Sino-American trade tensions.

Meanwhile, the dollar strengthened, the ICE U.S. Dollar Index DXY, +0.09% a gauge of the buck against a basket of a half-dozen rivals, was up 0.2%, at 98.11.

The gold-backed SPDR Gold Shares exchange-traded fund GLD, -0.01%  tipped 0.2% lower in premarket action.

Among other metals, July silver SIN19, -0.55%  fell 6 cents, or 0.5%, to $14.370 an ounce. July copper HGN19, -0.02% meanwhile, rose 0.2%, to $2.730 a pound. Meanwhile, July PLN19, -0.09%  dded 30 cents, or less than 0.1%, to trade at $814.50 an ounce, while June palladium PAM19, -1.04% was off $9, or 0.7%, at $1,322 an ounce.

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