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Gold slips with demand for safe havens

SAN FRANCISCO (MarketWatch) -- Gold futures declined Tuesday, coming under selling pressure after two days of solid gains and as investors cooled off to investments considered less risky.

Gold for December delivery (GCZ2) declined $3.40, or 0.2%, to settle at $1,612.80 an ounce on the Comex division of the New York Mercantile Exchange.

The metal has traded sideways for the better part of five months and Tuesday held to that pattern, said James Cordier, a portfolio manager with Optionsellers.com in Florida.

"People are really not looking for safe havens," he said. With no news that haven't been already priced in and diminished concerns about the euro zone, "gold is being almost avoided today."

The euro (EURUSD) rose to $1.243 from the $1.240 late in the North American session Monday. The dollar index (DXY) , which measures the U.S. currency against a basket of six major rivals, was nearly flat at 82.185 from 82.186 also in late Monday North American trading. Read more on currencies.

A weakening dollar is positive for gold and other dollar-denominated commodities as it makes them cheaper to holders of other currencies. Gold is also viewed as an alternative to the dollar, getting extra support from a lower U.S. currency.

U.S. stocks rallied and most commodities traded in the black, with copper among the top gainers.

September copper (HGU2) added 5 cents, or 1.5%, to $3.44 a pound. Silver for the same month's delivery (SIU2) rose 22 cents, or 0.8%, to $28.09 an ounce.

Sister metals platinum and palladium also posted gains, with October platinum (PLV2) up $8.50, or 0.6%, to end at $1,410.40 an ounce. September palladium (PAU2) rose $8.65, or 1.5%, to $588.20 an ounce.