Investing.com – Gold prices came under pressure on Tuesday as safe-haven demand fell after concerns faded over political uncertainty in the Middle East while a sharp jump in the dollar added to downside momentum.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange fell by $6.51, or 0.62%, to $1274.98 a troy ounce.
Gold prices gave up most their gains from Monday’s session as the dollar rose sharply on signs of progress on tax reform and bullish labor market data.
The U.S. Labor Department's latest Job Openings and Labor Turnover Survey (JOLTs) report, a measure of labor demand, showed job openings in September improved to about 6.1 million, beating expectations of 6.091 million.
The bullish data on job openings came as investor optimism on tax reform edge higher after Republic lawmakers began on Monday revising their proposed overhaul of the U.S. tax system.
Gold prices are sensitive to moves higher in the U.S. dollar – A higher dollar makes gold more expensive for holders of foreign currency, thus, reduces demand.
In other precious metal trade, silver futures fell 1.71% to $16.94 a troy ounce, while platinum futures lost 1.07% to $924.95.
Copper traded at $3.09, down 2.14% while natural gas rose by 0.67% to $3.15.
The uptick in natural gas prices comes as Commodity Weather Group said it expected below-normal temperatures in U.S. Pacific Northwest, Midwest and parts of Northeast between Nov. 6-10.