Gold prices dropped to a three-month low Tuesday, as the stronger dollar stripped the metal off its safe haven appeal despite rising geopolitical tensions in Ukraine and the Middle east. The dollar extended gains hitting a seven-month high against a six-currency basket before today`s ISM report probably shows growth in U.S. factory output in August accelerated at the fasest pace since April 2011. Again, today`s economic focus is about the manufacturing outlook, and greater acceleration in August, on top of a very solid July, would add to signs the US recovery is very much on track. - USDIX traded around 82.96 as of 15:39 GMT, hitting a session high at 83.01 and low at 82.77 compared with the day`s open at 82.78. More, the dollar kept the pressure on the precious metal ahead of Friday`s employment report, expected to underpin faster job creation in August. - Spot Gold dropped 1.59% to $1,266.71 an ounce as of 08:44 am ET. The metal is trading below the support level at $1,275.00, but beaking $1,262.65 is significant to confrim extending the downside move. Among other precious metals: - Spot Silver fell 1.50% to $19.20 an ounce - Spot Platinum fell 0.95% to $1,410.55 an ounce - Spot Palladium fell 2.34% to $885.95 an ounce Palladium saw the sharpest losses today, with prices pushing off the lowest in 13 years. The rising tenions between Ukraine and Russia was behind metal surge. On the energy markets, oil futures were still pressured by weakness of factory outlook in china and Europe. Economic data released yesterday showed that manufacturing growth in the euro area in August was worse than expected, while the growth in the factory sector in China fell to its lowest level in three months, which raised concerns about demand for oil in the world`s second-largest consumer. - WTI for delivery in October fell 1.12% to $94.89 a barrel on the New York Mercantile Exchange - Brent for October delivery fell 1.07% to $101.67 a barrel on the ICE exchange in London