Investing.com - Gold prices fell for the first time in six sessions on Tuesday, as investors locked in gains from a recent rally which took prices to the highest level in three months.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery shed $6.00, or 0.49%, to trade at $1,221.60 a troy ounce during European morning hours. Futures held in a tight range between $1,219.40 and $1,225.40.
A day earlier, gold rallied to $1,2232.00, the strongest level since February 17, before ending at $1,227.60, up $2.30, or 0.19%.
Prices were likely to find support at $1,210.60, the low from May 15, and resistance at $1,236.70, the high from February 17.
Also on the Comex, silver futures for July delivery dropped 28.5 cents, or 1.61%, to trade at $17.44 a troy ounce. On Monday, silver jumped to $17.77, a level not seen since February 3, before closing at $17.73, up 16.9 cents, or 0.96%.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.7% to hit 94.89, moving off last week's four-month low of 93.16.
Market players looked ahead to Wednesday’s minutes of the Federal Reserve’s April meeting, as well as U.S. inflation data on Friday, for fresh indications on the strength of the economy and the timing of a U.S. rate increase.
Recent economic reports have indicated that the economy has slowed since the start of the year, prompting many investors to push back expectations on the timing of an initial rate hike by the Fed.
A delay in raising interest rates would be seen as bullish for gold, as it decreases the relative cost of holding on to the metal, which doesn't offer investors any similar guaranteed payout.
Elsewhere in metals trading, copper for July delivery slumped 3.4 cents, or 1.15%, to trade at $2.873 a pound, as investors fretted over the health of China's economy.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.