Gold prices fell more than 1 percent on Tuesday as news that the Greek government had dropped calls for a write-off of its foreign debt sharpened risk appetite, sparking a rally in stock markets. The metal benefited in earlier trade from gains in other commodities but later came under pressure as interest waned in gold as a haven from risk.
"Traders are really in favour of a risk-on appetite not a safety appetite," said Phillip Streible, senior commodities broker for RJO Futures in Chicago. Spot gold was down 0.9 percent at $1,263.80 an ounce by 2:32 pm EST (1932 GMT), having earlier touched a low of $1,255.21, a 1.5 percent drop. US gold futures for April delivery settled down 1.3 percent at $1,260.30 an ounce.
"(There is some) repositioning away from safe havens," Mitsubishi analyst Jonathan Butler said. "$1,280 was taken out, the 50 percent retracement of the year-to-date high to last week's low. That may have triggered some sell orders." Among other precious metals, silver was up 0.9 percent at $17.36 an ounce. Platinum was up 1 percent at $1,235.25 an ounce, while palladium was up 0.1 percent at $783.75 an ounce.