Gold is collapsing to new lows

Gold fell towards a fresh six-year low on Tuesday.

Gold was down by just over 1% in New York, near $US1,064.50 an ounce, around levels it has not traded at since 2009.

Other precious metals including platinum and silver were also lower in trading.

Gold has dropped roughly 6% this month.

Elsewhere in commodities, crude oil was down about 2%, after rebounding from a drop of a similar magnitude on Monday. West Texas Intermediate crude futures in New York fel to as low as $US40.81 per barrel, having fallen to $US40.06 on Monday. WTI fell below $US40 for the first time since 2008 in August.

The Energy Information Administration is expected to report an eighth straight week of a build in inventories on Wednesday morning, according to analyst estimates from Reuters.

Stocks were rallying in early afternoon trading.

Near 12:20 p.m. ET, the Dow was up 103 points, the S&P 500 was up 11 points, and the Nasdaq was up 35 points — all these gains were by less than 1%.

Here’s a chart showing the drop in gold:

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