Gold prices fell 0.5 percent on Tuesday, retreating a bit from the previous day's rally as a stronger U.S. dollar reduced the appeal of safe-haven investments, and oil prices also dipped.
On Monday, bullion rose as much as 1 percent for its biggest daily rise in six weeks, after news of a string of high-profile arrests in Saudi Arabia boosted oil to a 2-1/2-year high. Tuesday's retreat from that rally stayed within a $20 range, noted Bill ONeill, partner at Logic Advisors in Upper Saddle River, New Jersey.
"Gold stuck within the $1,260-$1,280 range," he said. "The overall atmosphere for gold right now is not particularly positive. The safe-haven demand just isn't there."
Spot gold was down 0.5 percent at $1,275.30 an ounce.
U.S. gold futures for December delivery settled down 0.5 percent at $1,275.80 per ounce.