Mcx gold tips :
NEW YORK/LONDON: Gold edged high-ranking on Tuesday, the day after it took its deepest dive in years and hit five-year lows, with many dealers bracing for more depletion on expectations for a rise in U.S. interest rates and subdued need from India.
In what traders called a "bear raid," sellers on Monday dumped an estimated 33 tonnes of gold in just two minutes on exchanges in Shanghai and New York, sending prices on a nearly $50 downward spiral from which they never fully recovered.
On Tuesday, spot gold was up 0.2 percent at $1,098.58 per ounce at 3:00 p.m. EDT (1900 GMT), but traders remained uneasy due to another day of unusually large trading extent in China, where many suspect the selling spree originated.
After sliding on Monday by more than 3%, the biggest one-day loss since September 2013, bullion is trading around the critical $1,100 an ounce support level. Another breach of that could lead to a again sell off, some analysts said.
U.S. August gold futures settled down 0.3 percent at $1,103.50 an ounce, their weakest arrangement since February 2010.
A slide in the U.S. dollar and stock markets, integrated with gains for silver and palladium prices, may be giving gold bears "some pause for concern" on Tuesday, said analyst James Steel of HSBC in New York. Silver gained 1.1%, and palladium rose 3.4%, erasing Monday's losses.
"That is understood that is not a bullion-wide sell off," Steel said.
But many dread more losses after Monday morning's wave of selling hit markets shortly after the Shanghai Gold Exchange opened.
Some traders and analysts speculate it originated from a Chinese entity, probably a maneuver meant to pull prices through critical support levels during a time of day when trading is light. A Japanese holiday further reduced liquidity.
Another 29 tonnes worth of gold swapped hands on the Shanghai exchange on Tuesday, almost double its 16 tonne average daily volume last month.