Gold futures for December delivery were up 0.2% to $1,175 an ounce on the Comex Tuesday morning.
Prices of the yellow metal were falling on Friday and Monday as investors tried to consolidate gains, according to Market Watch. Tuesday's rebound is due to high optimism that the Federal Reserve won't raise interest rates before the end of the year.
"Although gold has made strong gains throughout October, I still think that the metal has potential to continue trading higher before the end of the year," FXTM Chief Market Analyst Jameel Ahmad told Market Watch. "U.S. interest rate expectations for 2015 are not only diminishing as each trading week passes, but also being pushed further back into 2016 with this providing encouragement for investors in gold."
Gold performs better in low interest rate environments as it does not offer a yield and struggles against assets that do.
Insight from TheStreet's Research Team:
Yamana Gold is a core holding of David Peltier's Stocks Under $10 Portfolio. During the most recent weekly roundup, this is what Dave had to say about the stock:
Yamana Gold ( (AUY) - Get Free Report ; 2.89%): This gold and copper exploration company operates seven mines and several ongoing development projects in Brazil, Argentina and Chile. It was a volatile week for the stock, which pulled back fractionally. We believe that management can continue to maximize margins in the coming quarters. AUY is an Inflection Point stock and has a price target of $12.50.