BENGALURU, Feb 20 (Reuters): Gold prices were weighed down by a stronger dollar on Tuesday, dropping for the third session, but were underpinned by geopolitical worries and uncertainty about this week's huge US bond auctions.
The dollar continued its rebound from three-year lows as investors believed the currency was due an upward correction after a brutal sell-off in recent weeks.
A buoyant dollar makes commodities priced in the greenback more expensive for buyers using other currencies. Spot gold was down 0.7 per cent, its biggest one-day per centage fall in two weeks, at $1,337.41 an ounce by 1110 GMT.
US gold futures shed 1.2 per cent to $1,339.80 an ounce, posting their biggest one-day per centage fall since November 2017.
Spot gold is expected to fall to the next support level at $1,326, according to Reuters technical analyst Wang Tao.
Gold may get a boost later on Tuesday, however, when the US government launches a series of auctions for $258 billion worth of debt this week.
Geopolitical uncertainty ranging from disunity at the recent Munich security conference to threatened US trade sanctions may increase safe haven demand for gold, he added.
© 2021 - All Rights with The Financial Express