Gold fell in New York as the dollar rose against the euro and a retreat in oil prices reduced the demand for the metal as a hedge against inflation.
Gold for June delivery closed at $884.80 an ounce on the New York Mercantile Exchange, down 90 cents for the session. It climbed as high as $888.80.
Gold remains capped by trend-line resistance at the $890 mark for the moment, said James Moore, analyst at TheBullionDesk.com.
Given the metal's reaction to pockets of dollar strength, it seems gold will find it tough to rally significantly, Moore said in a research note.
In Currency trading, the dollar rose against some of its currency rivals following sreports that U.S. officials are attempting to put a floor under the greenback.
We seem to be reacting a bit more negatively to dollar strength,' said James Moore, an analyst at TheBullionDesk.
In the short term, that is one of the factors (the gold market) will remain vulnerable to.
'Also, physical demand seems to be a bit lower than in the last year or so -- probably an effect of higher prices.'
A stronger dollar reduces gold's appeal as an alternative investment, and makes the precious metal, and other dollar-priced commodities such as crude, more expensive for holders of other currencies.
Crude for June delivery was last down $1.73 at $124.23 a barrel in New York.
Some investors may buy gold as a cheaper alternative to oil, analysts say. Last year, gold moved higher at about half the rate of oil's appreciation, with the precious metal rising 31 percent while oil advanced 57 percent.
This year, gold gained 5.7 percent before today, while oil jumped 31 percent.
Also on the Nymex, July silver futures gained 32 cents to end at $17.23 an ounce and July copper edged up 3 cents to finish at $3.75 a pound. July platinum added $21.50 to close at $2,123.30 an ounce and June palladium gained $2.95 to close at $446.80 an ounce.