Gold prices have come under renewed pressure as the probability of a summer rate hike in the U.S. has risen of late, according to an analyst from Swiss private bank Julius Baer.
"A rebounding dollar and cooling futures market sentiment have pushed gold prices towards $1,200 per ounce," Carsten Menke, commodities research analyst at Julius Baer said in a note Tuesday.
"We maintain a neutral view on gold but believe that investors should continue to consider it as insurance to their portfolios against the backdrop of prevailing economic and financial market risks."
Bullion fell to a 3-1/2 month low Tuesday morning and is on the way to its biggest monthly decline since November on the back of broad strength in the dollar. On Tuesday morning, spot gold was up 0.5 percent to $1,211 per troy ounce after falling as much as 1 percent in Monday's trade to $1,199.60 an ounce, its lowest since February 17.