Gold prices slipped again on Tuesday and fell below the key $900 a barrel mark. A better-than-expected consumer confidence report reduced the need to turn to the precious metal as a hedge investment.
June gold dropped to $893.60, down $14.60 on the session. Prices dropped as low as $885.50 early in the session.
The dollar is uncertain against other majors, slipping against the euro and remaining essentially unchanged versus the pound. The dollar moved off a five-week low set against the yen earlier in the day. Gold usually moves opposite the dollar because of its hedge appeal.
On the economic front, a report from the Conference Board showed that consumer confidence for March rose far more than expected, while a report from Standard and Poor's showed a slowing pace of contraction in home prices in February.
Earlier, the S&P/Case-Shiller 20-City Composite Home Price Index fell at an annual rate of 18.6 percent in February, a modest deceleration from the 19.0 percent drop in prices that was reported for January.
Additionally, the Federal Reserve began its two-day meeting today, although little is expected to come out of the meeting, as the interest rate has already been lowered to a near zero range.
June gold lost $5.90 on Monday. The drop was just the second in six sessions for the precious metal. Gold closed in the green four times in five sessions last week. Gold rallied $41.50 per ounce for the week - the first gain in five weeks for precious metal.
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