Gold headed sharply lower Tuesday, falling to a nearly four-month low as strength in the U.S. dollar and stock market, and upbeat economic data, weigh on the metal’s haven appeal.
February gold GCG8, -0.97% dropped $11.40, or 0.9%, to $1,266.30 an ounce. A settlement around this level would be the lowest since Aug. 8, according to FactSet data. The exchange-traded SPDR Gold Trust GLD, -1.11% fell 0.9%.
“Sentiment is bearish for gold,” said Chintan Karnani, chief market analyst at Insignia Consultants, noting that he expects to see a technical breakdown if futures prices trade below the $1,269 level.
“The rise in U.S. trade deficit numbers tells us of the strength of the U.S. economy till the first quarter of next year,” he said. “A strong U.S. economy will prevent sharp gains for gold.”