GOLD 0.51% $1,391.7 gold futures

December price to put pressure on

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    Gold stocks will come under much pressure today

    "NEW YORK (CBS.MW) - Gold futures fell as much as $4 an ounce Tuesday to touch a three-week low as demand for the precious metal weakened in the face of a seasonal descent.

    Shares of major metals companies paced the decline. Strength in the U.S. stock market lured investors away from the precious metals stocks.

    On the Commodities Exchange division of the New York Mercantile Exchange, December gold closed down $3.70 at $319.40 an ounce. Earlier, the contract touched a low at $318.80, its lowest level since Sept. 17.

    "There is a bearish season approaching in gold, where in 13 of the last 15 years, from approximately Oct. 17 to Nov. 1, December gold has dropped an average of just over $5," said Erik Gebhard, an analyst at

    Still, "a dip in prices to attract fresh buyers seems to be what gold bulls need," he said.

    Gold has rallied this year in inverse correlation to equities and the U.S. dollar, he said, noting that the World Gold Council reported a 3.6 percent rise in demand for gold in the second quarter, while jewelry demand was down about 1.7 percent.

    "Gold seems to be gaining popularity as a safe haven," said Gebhard."
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