The upward spike for both precious metals during the Monday trade session cut down on demand for the commodities. The yellowish metal climbed as high as 1 percent to kick off the trade week, but by the end of the day bullion was even. Boosts for gold are spurred by the ongoing conflict between Ukraine and Russia.
Gold futures also have been pinched by the strong performance of the world's reserve currency against the shared currency of the European Union. The dollar has advanced about 1.7 percent against the 18-nation monetary unit during the past 14 days. Gold and the U.S. dollar typically perform the inverse of one another while bullion often tracks the performance of the euro.
"Ukraine uncertainty is still providing short-term support but buying interest falls once prices get above $1,300," analyst Zhu Siquan with GF Futures Co. told the media outlet on Tuesday. "Euro weakness is also hurting gold."
At 9:25 a.m. on Tuesday, gold futures dipped 0.33 percent, a $4.26 loss $1,288.71 per troy ounce. At 9:23 a.m., silver futures fell 0.47 percent, a 9-cent loss to $19.27 per troy ounce.
Fed minutes, officials' speeches to influence value
The yellowish metal is likely to be impacted by the release of minutes from the late April U.S. Federal Reserve meetings. The minutes from the April 19 and 30 meetings are scheduled for release on Wednesday.
Thus far this year, the yellowish metal has climbed about 7.4 percent, which diverges strikingly from gold's performance in 2013. For the first time in 12 years, bullion endured yearly losses, dropping 28 percent as the world's largest economy grew stronger during the recovery from the Great Recession.
Gold prices are likely to be shaken by the spoken word of two Fed officials on Tuesday – Presidents Charles Plosser of Philadelphia and William Dudley of New York might drop indications about what is coming for next steps regarding the body's stimulus plan of $45 billion in purchases of debt every month. During the past four meetings, policy makers have opted to slash $10 billion per month in stimulus as the economy grows stronger.
Conflict in Crimea spurs increases
Russia Prime Minister Dmitry Medvedev told the U.S. and the European Union that they are facilitating the creation of a new Cold War with Russia regarding the ongoing conflict.
Russia has several retaliatory steps planned to counter the allies' implementation of sanctions, Medvedev told reporters. He did not specify what those steps will be.
Chinese, Indian demand slip
Reuters reports the globe's two top consumers of bullion reduced demand during the first quarter of the year.
The World Gold Council said consumption fell by 18 percent in China, the top consumer. Indian demand dropped by a quarter.
"In the first quarter of last year we saw quite a divergent market — we saw gold flowing out of ETFs, and as the price fell you saw consumers around the world surge into the market and buy a lot of gold," Alistair Hewitt with the World Gold Council said, according to Reuters. "What we've seen in Q1 2014 is a move away from those extremes and the market is a bit more stable," he said. "While we've seen coin and bar demand come down, we've seen ETF outflows subside."
Indian demand has been slipping because of government efforts to cut down on the nation's record current account deficit.
The subcontinent has boosted tariffs on imports while tying import volumes to export, according to Reuters.
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