Gold prices fell 0.5 percent on Tuesday, retreating a bit from the previous day's rally as a stronger US dollar reduced the appeal of safe-haven investments, and oil prices also dipped. On Monday, bullion rose as much as 1 percent for its biggest daily rise in six weeks, after news of a string of high-profile arrests in Saudi Arabia boosted oil to a 2-1/2-year high. Tuesday's retreat from that rally stayed within a $20 range, noted Bill O'Neill, partner at Logic Advisors in Upper Saddle River, New Jersey.
"Gold stuck within the $1,260-$1,280 range," he said. "The overall atmosphere for gold right now is not particularly positive. The safe-haven demand just isn't there." Spot gold was down 0.5 percent at $1,275.30 an ounce by 1:47 p.m. EST (1847 GMT), while US gold futures for December delivery settled down $5.80, or 0.5 percent, at $1,275.80 per ounce.
The dollar rose 0.3 percent versus the euro as investors bet that monetary policy would continue to diverge between the United States and the euro zone. Oil prices retreated after rallying Monday on an anti-corruption purge led by Saudi Arabia's Crown Prince Mohammed bin Salman. Some of the kingdom's political and business elite were arrested.
On Monday, gold also drew support from jitters linked to US President Donald Trump's trip to the Far East, MKS's head of trading Afshin Nabavi said. Trump's visit to South Korea could provide gold with some support in coming days, traders said. Among other precious metals, silver was down 1.6 percent at $16.96 an ounce. Its session high of $17.27 was the highest since Oct. 20.
Silver outstripped gains in gold during Monday's rally, ending the day 2.5 percent higher. That pushed the gold/silver ratio to its lowest since mid-September at 74.39. Platinum was down 1.3 percent at $922.40 an ounce, while palladium was down 0.4 percent at $995.60 per ounce.
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