WASHINGTON (dpa-AFX) - Gold futures settled lower on Tuesday, losing ground for the first time in three sessions, as the dollar gained in strength against most of its peers.
The dollar index advanced to 90.18 in the Asian session, and despite easing to 90.10, remains in positive territory, gaining about 0.15% from the previous close.
The dollar advanced after U.S. Treasury Secretary Janet Yellen's commented on Sunday that a hike in interest rates would be 'a plus' for policy makers. Yellen said inflation could reach as high as 3% this year as recovery continues.
The data on U.S. consumer price inflation for May is due on Thursday. Traders feel a significant surge in inflation might prompt the Federal Reserve to start discussing on tapering its asset buying program.
Investors are also looking ahead to the European Central Bank's policy meeting on Thursday, when the central bank will review the pace of emergency bond boys. Most analysts expect the central bank to maintain a higher pace of buying in the third quarter.
Gold futures for August ended down by $4.40 or about 0.2% at $1,894.40 an ounce, coming off the session's high of $1,906.90 an ounce.
Silver futures for July ended lower by $0.287 at $27.731 an ounce, while Copper futures for July settled at $4.5560 per pound, up $0.0295 from the previous close.
Data released by the Commerce Department showed U.S. trade deficit narrowed in the month of April, dropping to $68.9 billion in the month from a revised $75.0 billion in March. Economists had expected the deficit to narrow to $69.0 billion from the $74.4 billion originally reported for the previous month.
The narrower trade deficit came as the value of exports jumped by 1.1% to $205.0 billion, while the value of imports slumped by 1.4% to $273.9 billion.
Copyright RTT News/dpa-AFX