Gold prices drop over 1.0pc

Gold prices dropped more than 1 per cent on Tuesday, as the US dollar strengthened to a one-year high on market expectations of a stricter US Federal Reserve, pressuring the non-yielding precious metal, reports Reuters.

Spot gold fell 1.7 per cent to $4,121.09 an ounce, as of 1144 GMT, having touched its lowest since June 11 at $4,090.27 earlier. Bullion has fallen over 3 per cent since the Fed meeting last week.

US gold futures for August delivery fell 1.5 per cent to $4,139/oz.

For gold, hawkish Fed policy to counter inflation arising from war-driven energy costs has outweighed softer oil prices after US-Iran talks in Switzerland on Monday.

"The strength of the dollar, reinforced by last week's hawkish tilt from the Fed, is creating a headwind for gold prices," said ActivTrades analyst Ricardo Evangelista.