Investing.com - Gold prices pulled away from a three-week low on Tuesday, but still remained below the $1,200 threshold as the strong U.S. dollar continued to weigh on the precious metal.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery were up 0.23% to $1,182.50.
The February contract ended Monday's session 1.35% lower at $1,179.80 an ounce.
The dollar remained supported after the Federal Reserve signaled last week that it was on track to raise interest rates next year but said it was taking a patient stance.
Higher U.S. interest rates would boost the greenback and weigh on gold, which has benefited from central bank liquidity and a low interest rate environment since the 2008 financial crisis.
The central bank also acknowledged the improvement in the U.S. labor market and noted that the economy is making progress toward its goals in inflation and employment.
Markets shrugged off industry data released on Monday showing that U.S. existing home sales dropped by 6.1% in November to 4.93 million units from a revised total of 5.25 million the previous month.
Investors were now eyeing additional U.S. economic reports to be released later in the day, including final third-quarter GDP data, as well as on core durable goods orders and new home sales.
Trading volumes were expected to remain light this week with many investors away for the Christmas holiday and ahead of the New Year's holiday.
Elsewhere in metals trading, silver for March delivery gained 0.40% to $15.750 a troy ounce, while copper futures for March delivery were steady at $2.873 a pound.