Gold prices fell in early Asia on Tuesday with sentiment downbeat on prospects for a rate hike by the Federal Reserve this summer seen growing.
Gold for June delivery on the Comex division of the New York Mercantile Exchange eased 0.38% to $$1,212.05 a troy ounce.
Overnight, gold futures trimmed overnight losses in North American trade on Monday, after dropping below the key $1,200-level for the first time since February as investors continued to factor in an increased chance of a near-term U.S. interest rate rise.
Expectations for a summer rate hike mounted after Federal Reserve Chair Janet Yellen said late Friday that a rate increase would be appropriate in coming months if the economy continues to strengthen.
St. Louis Fed President James Bullard was the latest policymaker to suggest that a rate hike in June or July is a real possibility. Speaking in Seoul earlier, Bullard said global markets appear to be "well-prepared" for a summer interest rate hike.
Gold futures are down nearly 7% so far in May as hawkish comments from Fed officials as well as minutes of the Fed's April meeting have convinced many analysts and investors that a rate hike in June or July is a real possibility.
Reference: Investing
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