The world's reserve currency, which typically performs the inverse of the yellowish metal, was climbing against the shared currency of the European Union as the trading session continued. As the dollar has grown stronger during the past few trading sessions, the price of gold has endured losses.
Thus far this year, gold futures have dropped roughly 14 percent.
"Currency movements are clearly driving the market at the moment and then if you look at bond yields they are also moving higher, indicating that investors prefer to put their money in other assets," analyst Karim Cherif with Credit Suisse told Reuters on Tuesday. "We had a technical rebound, people have been buying gold particularly on the physical side, but now we are back to those factors that we have referred to as being negative for gold, such as continued investment outflows, deflation expectations, dropping systemic risk and weak technical outlook."
At 12:19 p.m. on Tuesday, gold futures edged down 0.1 percent, a $1.45 loss to $1,429.14 per troy ounce.
Greenback's gains goad gold
The Dollar Index, a gauge of the greenback's value against six rival monetary units, pushed up on Tuesday and headed toward its highest value in five weeks.
Some gains for the dollar come at the expense of the euro's poor performance as the pressured monetary unit was pinched by a German consultancy noting investor sentiment is on the wane in the largest economy of the euro zone.
The dollar was spurred by retail sales data surprisingly gaining last month, which also imparted the belief that the globe's largest economy continues moving ahead with its recovery from the Great Recession.
Conjecture is also slipping about the U.S. Federal Reserve prolonging economic stimulus measures.
Last month wasn't particularly pleasant for dealers of the yellowish metal, according to Bloomberg.
The precious metal fell into a bear market and most of the 38 Bloomberg-polled analysts who were surveyed in April said the 12 consecutive years of annual gains for gold futures will go no further than this year.
"April was the worst month in memory," owner Arthur Abramov with cash-for-gold store Manhattan Buyers Inc. in New York told the news source, noting volumes fell to 300 ounces per month after having checked in at 500 ounces. "A lot of people were shocked, and a lot of people were standoffish about selling."
With a record price of $1,923.70 per troy ounce as established on September 7, 2011, bullion presently is 26 percent below that all-time high.
Bearish streak to notch four days
MarketWatch reports gold futures were heading toward a fourth consecutive trading session of losses on Tuesday.
The past three trading session have seen the price of gold lose 2.7 percent of its value.
U.S. equities were climbing on Tuesday, which did its part to draw attention and resources of investors away from the commodities market.
"We would not be surprised to see gold head towards the $1,400 level as the U.S. dollar strength may cause gold sellers to come back to the market," president Jason Rotman with Lido Isle Advisors in Newport Beach, California told the news source, noting "gold prices may have room to fall more."
But one monitor of the gold market said the recent performance of the yellowish metal is opening opportunity for good deals for those interested in purchasing.
Investors in Asia "are scooping up as much or more of the gold recently returned to the market," editor Gene Arensberg with the Got Gold Report told MarketWatch. "In that sense, gold is migrating from west to east at a pretty fast clip."
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