The price of gold fell on Tuesday, dragged down by strength in the U.S. dollar which has benefited from the growing view in the market that the American economy is back on firmer footing, Reuters reports.
According to the news outlet, the dollar benefited from wariness in the market that stemmed from talks between the Italian government and unions in the country. These dealings pushed the euro down and drubbed the commodity markets.
Reuters reports that spot gold dropped 0.3 percent during morning trading to settle at $1,649.69, adding to a nearly 3 percent drop for the month.
"At the moment, it's not looking great for gold. On the one hand you have the strengthening dollar against the euro hitting the market and you also don't have that much support from the physical market," Nikos Kavalis, an analyst for RBS, told the news outlet.
RTT News reports that the reversal of fortune for the dollar helped to influence the price of gold, as the metal shed $17.50 an ounce during early trading. Commodity investors may have been drawn to the greenback.
