Indications about a strengthening U.S. economy prompted gold futures to lose value on Tuesday as demand fell for the yellowish metal as a safe haven, according to Bloomberg.
The U.S. dollar pushed to its top value in about 30 days against the shared currency of the European Union, which tugged down bullion as the precious metal typically performs the inverse of the world's reserve currency. Silver futures also dipped, tracking the downward dive of gold futures.
"A positive U.S. macro scenario is, as ever, bearish for gold," states a Tuesday report authored by analyst Andrey Kryuchenkov with VTB Capital in London, according to Bloomberg. Gold futures are "ever-so sensitive to the Fed's policy expectations and the U.S. dollar trade. The market will probably still keep an eye on developments in Ukraine."
At 9:24 a.m. on Tuesday, gold futures edged up 0.07 percent, an 85-cent increase to $1,296.65 per troy ounce. At 9:23 a.m., silver futures slipped 0.02 percent, which showed no reduction as the whitish metal checked in at $19.54 per troy ounce.
Reuters reports the dollar advanced against the shared currency of the European Union because of confidence that the central bank of Germany will support the implementation of monetary stimulus measures.
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