Gold prices continued its southern journey in Asian trade Tuesday mainly on a strong dollar and weak equities that prompted investor's to sell the yellow metal.
Gold for immediate delivery was seen trading at $1220.54 an ounce at 12.00 noon Singapore time while U.S. gold futures for December delivery was at $1,222.4 an ounce on the comex division of Nymex.
Analysts however said the precious yellow metal could make a comeback as reports suggested drops in US existing homes sales which will be released later today.
Silver, platinum and palladium were under pressure from weak bullion and declines in the Nikkei
The greenback regained strength against most major currencies Tuesday as most of Asia-pacific stocks were trading in a negative territory.
On Monday, the precious metal declined on concern that an economic slowdown will erode demand for commodities, including precious metals.
Gold futures for December delivery fell 30 cents to close at $1228.50 an ounce at on the Comex in New York. Prices swung between a gain of 0.4 per cent and a 0.4 per cent loss.
Gold futures climbed to a seven-week high of $1239.50 an ounce on August 19 and are 3 per cent below their record set on June 21.