Gold Falls to $1,291.40 an Ounce on Accelerated Selling

Gold fell 2.6 percent or $33.60 to $1,291.40 an ounce on Tuesday as investors sold off the precious metal, Reuters reported. Prices for the yellow metal dropped below their 200-day average to break former resistance levels early in the trading day, which made selling gold a much more appealing move. A stronger dollar and excellent U.S. retail sales data caused gold prices to fall later in the day, according to Reuters.

“Gold was weak all morning after yesterday’s U.S. data,” Heraeus trader Alexander Zumpfe told Reuters. “Physical demand is (also) weak, so the selling brought it closer to the 200-day moving average, step by step. Finally it broke.”

U.S. gold futures for June delivery were down $35, selling at $1,292.50 per ounce.