Gold falls as dollar firms

Gold fell to a near two-week low on Tuesday on a firmer dollar, with traders positioning for interest rate cues from a host of Federal Reserve speakers this week, reports Reuters.

Spot gold fell 0.5 per cent to $1,967.09 per ounce by 1050 GMT, its lowest since October 25. US gold futures dropped 0.8 per cent to $1,973.50.

The dollar index rose 0.4 per cent, making bullion more expensive for overseas buyers.

The gold market is waiting for further dovish signals from the US central bank before the rally can continue, said Carlo Alberto De Casa, market analyst at Kinesis Money, adding prices were consolidating after slipping into the overbought territory.

Gold gained more than 7 per cent in October as the conflict in the Middle East boosted safe-haven demand.

Spot silver fell 1.6 per cent to $22.66 per ounce and platinum eased 0.7 per cent to $899.10.

Palladium slipped 1.3 per cent to $1,092.22 and was down 39 per cent for the year so far.