MTECHTIPS

MTECHTIPS:-Gold erases losses stemming from global economic uncertainty

Gold prices rose on Tuesday, shaking off earlier losses stemming from global economic uncertainty, especially out of Europe, where Spain has yet to make it clear if it will seek a bailout.U.S. markets were closed on Monday ahead of Hurricane Sandy, which roared ashore as a powerful post-tropical system whipping up wind, driving rains and a deadly storm surge.On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were up 0.15% at USD1,711.25 a troy ounce, up from a session low of USD1,706.95 and down from a high of USD1,712.05 a troy ounce. Gold futures were likely to test support at USD1,705.45 a troy ounce, Monday's low, and resistance at USD1,719.35, Fridays' high.Gold dipped earlier as investors shunned risk over ongoing doubts as to whether Spain will request financial assistance from its neighbors.Spanish Prime Minister Mariano Rajoy criticized the idea of giving a new European Union Commissioner greater say-so over eurozone national budgeting policies, saying it could be counterproductive, though he did say Madrid would considering seeking a bailout "if we think it is in the interest of Spaniards."Elsewhere in Europe, Spanish retail sales fell 10.9% from the same month a year ago, much worse than market expectations for a decline of 6.2%, which dampened appetite for risk, including gold.Requesting financial assistance would allow Spain to tap the European Central Bank's bond-buying program, which would lower yields in Spanish government debt auctions and ease credit conditions in the country.Meanwhile in Greece, the country is negotiating austerity terms with its troika of lenders, the International Monetary Fund, the European Central Bank and the European Commission.