Gold suffers a second session of losses as investors await Fed update

MarketWatch/Myra P. Saefong & Rachel Koning Beals

Gold prices ended lower on Tuesday, suffering the first back-to-back decline in about three weeks ahead of a midweek policy update from the Federal Reserve.

…A broad measure of the U.S. currency, the ICE U.S. Dollar Index DXY, +0.06% which compares the buck against a half-dozen other currencies, has fallen 1.7% month to date but traded little changed Tuesday. Gold typically has an inverse relationship with the dollar as moves in the U.S. unit can influence the attractiveness of those commodities to holders of other currencies.

Overall, “the dollar has crumbled while the price of gold has begun inching higher toward a price takeoff trigger that should shoot it higher by $200-$300 an ounce over the coming rest of the year,” Peter Spina, president and chief executive officer of GoldSeek.com, told MarketWatch.

PG View: Downticks over the past two sessions have been negligible. In fact, the spot market closed ever-so-slightly higher yesterday.