Gold futures fell Tuesday for a third straight session as a stronger dollar reduced the metal's investment appeal and as some investors sold the metal to lock in gains from last week's rally.
Gold for April delivery fell $30.20, or 3.2%, to $922.30 an ounce on the Comex division of the New York Mercantile Exchange. It rallied nearly $70 last Thursday but has since fallen about $35.
The dollar traded higher against other major currencies Tuesday, with the dollar index up 0.3% at 83.798. A stronger dollar pressures dollar-denominated commodities, such as crude oil and gold, as it makes them more expensive for holders of others currencies. See Currencies.
"Given the perceived reduction in demand for safe-haven assets and still strong inflows of scrap metal, gold could look to consolidate back into the previous $890-$940 range," wrote James Moore, an analyst at TheBullionDesk.com.
Holdings in SPDR Gold Shares, the biggest gold ETF, stood at 1,114.29 tons Monday, slightly lower than the previous day's record of 1,114.60 tons, according to the latest data from the fund.
SPDR slid 1.9% to $90.29 in Tuesday's trading.
Gold fell on Monday as the U.S. Treasury detailed a plan to help the private sector buy $500 billion worth of toxic assets, boosting investors' confidence and reducing the metal's safe-haven appeal.
The news sparked the biggest rally in stocks since November, with the Dow Jones Industrial Average gaining over 500 points. But stocks gave up some of those gains Tuesday. See Market Snapshot.
"Further easing in precious metals prices was noted overnight, as market participants took cues from yesterday's massive Dow rally and exhibited rising degrees of risk appetite," said Jon Nadler, senior analyst at Kitco Bullion Dealers, in a note.
And gold remained under pressure in Asian and European trading "as the U.S.'s tackling of toxic assets improves risk appetite," said Moore.
On Tuesday, Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke testify before the House Financial Services Committee on the bonuses paid to American International Group .
Among other commodities Tuesday, crude-oil futures fell from their highest level in nearly four months on expectations that U.S. crude inventories rose last week as demand declined.
In other metals, silver for May delivery slumped 4% to $13.315 an ounce and April platinum fell 2.3% to $1,116.90 an ounce. The June contract for palladium lost 2% to $209 an ounce. May copper lost 2.4% to $1.7975 a pound.
Among metals-sector equity benchmarks, shares of Barrick Gold Corp. , the largest gold mining company, lost 1.8% to $32.59, while South Africa's Gold Fields Ltd. lost 4.7% to $11.57, and Goldcorp Inc. dropped 2.7% to $33.21.
The Amex Gold Bugs Index , which tracks the share prices of major gold companies, slid 2.7% to 319.85.
The iShares Gold Trust ETF fell 1.4% to $90.86, while the iShares Silver Trust ETF was down 2.3% at $13.14.
