Gold futures are modestly lower in step with a softer euro that has again been bogged down by the ongoing debate over whether fellow European Union nations will come to the rescue of Greece and its debt problems.
In recent trade, most-active April gold was down 50 cents, or 0.1%, to $1,099 an ounce on the Comex division of the New York Mercantile Exchange. Lightly traded but nearby March gold fell $2.30, or 0.2%, to $1,097.
Most-active May silver fell 8.5 cents, or 0.5%, to $16.85.
George Gero, vice president with RBC Capital Markets Global Futures, described gold as in a small trading range as "we see-saw with the dollar index" and in reaction to other currencies.
A softer dollar tends to attract buying of gold as a hedge, whereas dollar gains often lead to selling gold. So far, the euro is down to $1.3520 from $1.3554 late Monday.
The greenback remains underpinned against the euro by thoughts that euro-zone leaders appear unlikely to come up with a rescue package at a EU summit later this week. Meanwhile, the British pound is softer after tame inflation data.
April gold futures continue to hold near the $1,100 area despite forays just below this week, with technically oriented traders ready to act on a break either way, particularly if volume picks up, Mr. Gero said.
"The $1,100 level is a big mark," said Charles Nedoss, senior market strategist with Olympus Futures. "If we can eke out a close above $1,100, that is positive. If we can't, we could come down and maybe test the $1,080 area."
If the market can't hold $1,100, it would also be the third straight close below the 20-day moving average and could damp sentiment, Mr. Nedoss said. This average currently passes through $1,117.30.
