Gold Slips on Ukraine Cooperation, Stronger Dollar

Gold dropped 0.4 percent or $5.22 to trade at $1,306.10 per ounce on Tuesday, according to Reuters. Shares rose as signs emerged that pro-Russian rebels would cooperate over the downed Malaysian plane, easing geopolitical tensions and lessening the appeal of precious metals as safe-haven investments. The US dollar also rose, further contributing to the drop in gold’s price.

“An increase in U.S. inflation in the past few months has brought this issue back to the forefront of gold investors’ concerns, despite – in fact partly because of – the Fed chairwoman dismissing it as ‘noise,'” Macquarie analyst Matthew Turner told Reuters.

U.S. gold futures for August delivery were down 0.6 percent or $7.84 to $1,306.20 per ounce.