Gold slipped on Tuesday as a strong dollar and signals the US economy is benefiting from a decline in oil prices renewed expectations of a tightening in monetary policy by the US Federal Reserve around the middle of next year. Spot gold dipped 0.95 percent to $1,198.77 an ounce by 2:52 pm EST (1952 GMT), having gained nearly 4 percent on Monday in its biggest one-day jump since September 2013. US gold futures fell 1.5 percent to settle at $1,199.40 an ounce.
Gold prices consolidated after the spot market fell on Monday to a near-three-week low after Switzerland voted against boosting its gold reserves, then rallied to $1,220.99, its highest in a month, as oil prices recovered. "Technically, it is important that gold holds the $1,190 area, as a breach through that level could generate further losses to that $1,140 to $1,150 range that we have seen on Monday," ActivTrades senior analyst Carlo Alberto de Casa said. Platinum lost 2.1 percent to $1,211.25 an ounce, while silver was flat at $16.42 an ounce and palladium edged 0.6 percent lower to $798.50 an ounce.
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