Goald Prices Near 1 Month Low

Gold dropped and held near its lowest in a month on Tuesday, with its appeal as an alternative investment and a hedge against inflation weakened by a firming U.S. dollar and sliding crude oil prices.

Investors were on the sidelines after their confidence was shaken by a recent broad-based sell-off in commodities. Gold has lost more than 10 percent in value since spiking to an historic high of $1,030.80 an ounce on March 17.

Gold fell to $919.20/920.00 ounce from $920.90/921.70 an ounce in New York on Monday and was within sight of last week's one-month low of $904.65 an ounce.

"If gold were to start heading lower again, say below $900 an ounce, that might create a temporary cycle of further selling," said an analyst at Commonwealth Bank of Australia in Sydney.

"As investors' sentiment turned, gold was then especially vulnerable to that change in sentiment. I think it's difficult to see which way gold would go in the very short term."

Platinum fell while silver and palladium gained but stayed below recent highs. Precious metals, oil, grains and other agricultural products tumbled last week in a wave of selling as funds cashed out, taking profits at record high prices.

The dollar held onto gains after better-than-expected U.S. housing data revived optimism towards the world's biggest economy. The euro hardly changed at $1.5433 -- well below a record high of $1.5905 hit last week.