Investing.com - Gold futures dropped to one-week lows on Tuesday, as a stronger U.S. dollar weighed on the precious metal amid ongoing concerns over tensions in Ukraine.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at $1,304.90 a troy ounce during European afternoon trade, down 1.68%.
The June contract settled 0.64% higher on Monday to end at $1,327.5 a troy ounce.
Gold futures were likely to find support at $1,395.90 a troy ounce, the low from April 7 and resistance at $1,331.30, Monday's high.
Demand for the safe-haven greenback strengthened as the U.S. and the European Union said that they are considering further sanctions against Moscow after pro-Russian separatists on Monday ignored an ultimatum to leave occupied government buildings in eastern Ukraine.
Market participants were eyeing a meeting scheduled on Thursday in Geneva between the U.S., the EU, Ukraine and Russia, with hopes it will bring a political resolution to escalating tensions in Eastern Europe.
Traders were also awaiting the release of U.S. economic data later in the trading session, after a report on Monday showed that U.S. retail sales rose 1.1% in March, exceeding expectations for a 0.8% gain. Retail sales in February were revised up to a 0.7% increase from a previously estimated 0.3% rise.
Core retail sales, which exclude automobiles, rose 0.7% last month, more than the expected 0.5% increase, after a 0.3% gain in February.
Elsewhere on the Comex, silver for May delivery tumbled 1.17% to trade at $19.778 a troy ounce, while copper for May delivery fell 0.26% to trade at $3.040 a pound.