Precious-Gold dropped slightly on Tuesday, as investors remained uncertain about the metal’s outlook amid the escalating tensions in Ukraine and the strength of the U.S. dollar.
Bullion became more expensive for holders of other currencies after the dollar steadied near one-month high on improvement in U.S. economic data.
The U.S. dollar was little changed versus a basket of major currencies to hover around 79.95, after hitting a peak of 79.98, according to the dollar index.
The most recent data suggest that recovery in the world’s biggest economy is gaining traction despite the withdrawal of bond purchases by the Federal Reserve.
Later in the day, a U.S. report may signal retail sales climbed for a third straight month in April.
Retail sales probably rose 0.4 percent last month following a 1.1 percent advance a month earlier.
On the other hand, the Gold has found some support from the unrest in Ukraine, where Pro-Russian separatists in Eastern Ukraine called for becoming a part of Russia after Sunday referendum on secession witnessed unsounding victory.
However, the government in Kiev and its U.S. and European allies considered the referendum as illegitimate.
Gold prices fell to the lowest level in a week yesterday, yet it continued to find support at $1280 levels.
Meanwhile, the metal is trading around $1291.35 an ounce after hitting a high of $1298.47 and a low of $1290.25.
The trading below Daily SMA 200 located at $1298 levels is still putting the metal under pressure.
Crude Oil for June’s delivery inched up to trade around $100.83 a barrel after touching a low of $100.47.