Gold prices fell as the dollar gained on Tuesday, with investors waiting for clues on the timing of any increase in US interest rates from minutes of a Federal Reserve meeting and in a series of speeches by Fed officials this week. The heads of five regional US Fed branches are scheduled to speak this week. In addition, Fed Board Governor Jerome Powell speaks on Wednesday, when minutes of the last policy meeting are also due.
Spot gold fell 0.4 percent to $1,233.21 per ounce by 0550 GMT, while US gold futures lost 0.4 percent, at $1,234.60.
"People are awaiting direction from the minutes of the last FOMC (Federal Open Market Committee) meeting. If it offers any significant indication that the Fed can raise rates in the next meeting, there will be a negative impact on gold," said Hareesh V, head of research at Geofin Comtrade Ltd. "Otherwise, prices can go higher again because of global uncertainty."
Gold is highly-sensitive to rising US interest rates, as it increases the opportunity cost of holding non-yielding bullion, while also boosting the dollar. Investor appetite has however shown signs of easing since gold hit a three-month high on February 8. Data also showed on Friday that speculators cut their net long position in COMEX gold for the first time in three weeks in the week to February 14. Spot gold may break a support at $1,233 per ounce, according to Reuters technical analyst Wang Tao.