Gold Drops to $1296 as U.S. Stocks Rally

Gold settled lower on Tuesday on buoyant global equities and as the dollar strengthened after upbeat U.S. data, while the market continued to monitor international political tensions.

Palladium fell from a 13-year high of $900 an ounce hit in the previous session, supported by worries about supplies from top producer Russia and strong demand prospects. Prices were last down 1.1 percent at $878 an ounce.

“It is mostly the demand side, with record-high car sales from China, while supply comes from South Africa and Russia, where there are continued disruptions… this makes it the perfect candidate for funds to step in,” Saxo Bank senio manager Ole Hansen said.

CNBC

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