Investing.com - Gold rallied on Tuesday, as geopolitical concerns mounted after Turkey shoot down a Russian jet fighter.
Gold for December delivery on the Comex division of the New York Mercantile Exchange jumped $10.10, or 0.95%, to trade at $1,076.90 a troy ounce during U.S. morning hours. A day earlier, 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.
Also on the Comex, silver futures for December delivery rose 9.8 cents, or 0.7%, to trade at $14.13 a troy ounce. On Monday, prices hit $13.85, the weakest since August 2009.
Turkish fighter jets shot down a Russian warplane near the Syrian border after it violated Turkey's airspace on Tuesday, a Turkish military official said.
However, Russia's defense ministry said the downed fighter jet did not violate Turkish airspace.
Turkey backstabbed Russia by downing the Russian warplane and acted as accomplices of the terrorists, Russian President Vladimir Putin said.
Investors often buy gold and silver as refuges against economic and political uncertainty and as hedges against inflation.
Meanwhile, the Commerce Department said the U.S. economy grew 2.1% in the third quarter, in line with expectations. Preliminary data initially pegged U.S. growth at 1.5% in the third quarter.
The data showed consumer spending rose 3.0%, below expectations for 3.2% and down from an initial estimate of 3.2%. Consumer spending typically accounts for nearly 70% of U.S. economic growth.
Most Federal Reserve officials believe there is a strong case to begin raising interest rates at the central bank's December 15-16 meeting, as long as U.S. economic data does not disappoint in the coming weeks.
Gold futures are down more than 6% so far this month amid mounting expectations the Fed will raise rates for the first time in nearly a decade at its mid-December meeting.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
The U.S. dollar hovered near eight-month highs against a basket of six other major currencies, weighing further on metal prices. Dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.
Elsewhere in metals trading, copper prices traded not far above the prior session's six-year low on Tuesday, as expectations of higher interest rates in the U.S., a broadly stronger U.S. dollar and slower global economic growth, especially in China, weighed.
Prices of the red metal are down more than 12% so far this month as persistent worries about future demand from top consumer China and a stronger greenback slammed commodities.