Investing.com -- Gold futures edged lower on Tuesday amid a modest uptick in the U.S. dollar on the final day of trading in March, as the precious metal posted its second consecutive monthly loss.
On the Comex division of the New York Mercantile Exchange, gold for June delivery slid 1.70 or 0.14% to 1,183.60 a troy ounce. It came one day after gold plunged more than $15 an ounce, as traders reacted to geopolitical and economic risk around the world. In China, People's Bank of China governor Zhou Xiaochuan raised the possibility that there might be room in the Chinese economy for an additional round of quantitative easing, which push investors out of gold and into yield bearing assets.
Global investors also awaited a potential deal regarding the destabilization of Iran's nuclear program. Iran and a group of six major world powers reportedly moved closer to a preliminary accord on Tuesday afternoon in Lausanne, Switzerland, but had yet to reach a deal ahead of a midnight deadline. There were indications that the most complex issues would be deferred for a final agreement in three months.
In a briefing with reporters on Tuesday afternoon, White House press secretary Josh Earnest said talks with Iran could extend into Wednesday. Earnest added that the White House is interested in continuing negotiations on Tuesday as "long as they are productive."
Gold is viewed as a safe haven in periods of global instability. EUR/USD dipped nearly 1% on Tuesday afternoon to 1.0731, as Greece failed to reach an initial deal with its troika of creditors deemed necessary to stave off bankruptcy. Describing Greece's proposal of austerity measures as a "list of ideas," rather than "a concrete plan," officials from the European Union and the International Monetary Fund dismissed the Greek package of reforms measures that are required to unlock critical aid.
Greece's inability to reach a deal with its creditors has stoked fears that it could leave the European Union and eventually default on its sovereign debt.
Elsewhere, the dollar moved slightly higher upon strong consumer sentiment. The Conference Board, a private research group, said its Consumer Confidence Index increased to 101.3 in March, up from a revised level of 98.8 in February. The U.S. Dollar Index, which measure the strength of the greenback versus gained 0.44% to 98.74 on Tuesday.
Dollar-denominated commodities such as gold become more expensive for foreign purchasers in periods of a stronger dollar.
It has been an extremely volatile month for the precious metal. After ending February at $1,214 an ounce, gold futures plunged to $1,165.40 on Mar. 6 when a stronger than expected U.S. jobs report raised sentiment of an imminent interest rate hike by the Federal Reserve. Gold prices continued on a downward trend, plummeting to a four-month low at $1,149 on Mar. 17 before rebounding a day later following relatively dovish comments by Fed chair Janet Yellen on the strength of the U.S. economy. Gold soared on two consecutive trading days, reaching $1,185.40 on Mar. 20, before peaking at $1,205.70 on Mar. 26.
Gold prices retreated to $1,185.30 an ounce on Monday.
Elsewhere, silver futures for May delivery fell slightly on Tuesday by 0.066 or 0.40% to 16.608 a troy ounce.
Copper futures for May delivery fell 0.042 or 1.49% to 2.74 a pound.