Gold struggled to recover from overnight losses on Tuesday on expectations of a Federal Reserve rate hike next week and a robust dollar. The metal was also hurt by a slide in commodity prices, particularly crude oil which was near 7-year lows as Opec continues to pump near record oil to defend market share. Spot gold had ticked up 0.3 percent to $1,073 an ounce by 0635 GMT, but not far from Monday's session low of $1,069.66. The metal slid 1.5 percent overnight.
"Plunging commodity prices and a stronger dollar set the stage for a retreat in gold prices," HSBC analyst James Steel said. "Prices may stay on the defensive but further losses (are seen being) limited."
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