Gold Drops Below $1190 as Dollar Rally Continues

Gold dipped almost 2 percent on Tuesday as the dollar extended gains following a raft of strong U.S. data and recent comments from Federal Reserve Chair Janet Yellen that reinforced the central bank’s tightening bias on monetary policy.

U.S. gold futures for June delivery settled down $17.10 at $1,186.90 an ounce.  Spot gold dropped to a two-week low of $1,185.35 an ounce earlier and was down 1.7 percent at $1,187.

The dollar continued its strong run, up 1.2 percent against a basket of leading currencies, after data showed U.S. business investment spending plans increased solidly for a second straight month in April.