Gold falls to 2-week low on slowing safe-haven demand

Gold prices fell during the European session on Tuesday, to deepen losses for the third straight day to a 2-week low, on slow safe-haven demand, and a rise in the US dollar against a basket of major currencies.

Gold prices fell by 0.8% to $1,535.88 (the lowest since Jan. 3), after opening at $1,548.18, and hit a day high of $1,548.87.

The yellow metal closed lower by 0.9% yesterday, to post its third daily loss in the four days, on improved investor risk-appetite.

Gold prices are facing pressure from slow safe-haven demand, and improved risk-appetite, as risks that pushed gold prices 7-year highs receded.

These risks were the heightened geopolitical tensions in the Middle East between the US and Iran after the killing of the Iranian General Qassem Soleimani in a US airstrike.

Market sentiment also got a boost as the US and China are going to sign the phase-one trade deal on Wednesday in Washington, DC.

The dollar index rose today by 0.1%, to extend its gains for the second straight day, reflecting a strong performance against a basket of major currencies.

The greenback's rally comes as demand surged on higher-yielding currencies, ahead of key US data releases on inflation levels for December.

Gold holdings at the SPDR Gold Trust, remained unchanged yesterday, with a total of 874.52 metric tonnes (lowest since Aug. 27).