Gold futures managed to log a minor gain on Tuesday, as the dollar rose after stronger than forecast U.S. consumer confidence data and on expectations of higher U.S. interest rates in the first half of 2015.
The Conference Board, an industry group, said its index of consumer attitudes rose to 82.3, the highest since January 2008, from a upwardly revised 78.3 in February and against an expected reading of 78.6.
U.S. gold futures for April delivery settled 20 cents higher at $1,311.40 an ounce.
Spot gold hit its lowest since Feb. 14 at $1,305.50 an ounce soon after Philadelphia Federal Reserve President Charles Plosser said Fed Chair Janet Yellen had not made a mistake when she said there may be around six months between the bank ending its bond buying and starting to raise interest rates.
Low interest rates, which cut the opportunity cost of holding non-yielding bullion above other assets, had been an important factor driving bullion higher in recent years.