Gold prices turned lower on Tuesday, after nearing the prior session's one-month high, as the US dollar, Treasury yields and stock markets extended gains. Bullion was higher earlier on support from US political and economic uncertainty and expectations of a lower dollar. Spot gold was down 0.3 percent at $1,249.56 an ounce by 2:34 pm EDT (1834 GMT), having touched its highest in a month at $1,261.03 on Monday. US gold futures settled down 0.01 percent at $1,255.60.
"We saw investors cycle out of gold but back into equity markets," said Phillip Streible, senior commodities broker for RJO Futures in Chicago, adding that profit-taking also added pressure to the metal. "The dollar index and the equity markets are playing the biggest role in the direction of gold right now."
A strong greenback makes dollar-denominated gold more expensive for holders of other currencies, potentially decreasing demand. Prices also responded to technical resistance around $1,260, near the 200-day moving average, while support is expected to kick in at a Fibonacci retracement level of about $1,245.
The Fed raised interest rates this month, boosting the dollar, which could strengthen further on expectations of further rises after comments from its policymakers. In other metals, spot silver gained 0.1 percent at $18.09 an ounce, after tapping $18.23, the highest since March 2. Spot platinum slid 1.4 percent at $949.95. Palladium ceded 0.6 percent to $788.22 an ounce. The industrial metal used in autocatalysts hit $815.40 last week, its highest since March last year, on expected growing demand from carmakers.