Gold drops to 4-day lows on stronger dollar

The US dollar strengthened broadly on Tuesday, dragging gold prices to 4-day lows, helped by upbeat comments from Federal Reserve Chair Janet Yellen on the US labor market.

Although risk aversion increased over the last sessions after Turkey, Germany, and Switzerland were hit by terrorist strikes, the yellow metal remained on the defensive weighed down by a stronger dollar, which reached a fresh 14-year high against a basket of currencies.  A stronger dollar usually weighs on gold, as it makes dollar-priced commodities more expensive for holders of other currencies.

Gold fell to a low of $1,127 an ounce on Tuesday and it was last trading down 0.79% at the $1,129/oz region.