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·         Gold prices dipped on Tuesday as investors anxiously awaited news on the next head of the U.S. Federal Reserve, while strong share markets and a calmer geopolitical environment sapped safe-haven demand.

"People are going into the equity markets and taking off their safe-haven plays," said Phillip Streible, senior market strategist at RJO Futures in Chicago.

 

Gold futures may remain weak until Friday’s U.S. gross domestic product figures are released, he added.

·         Spot gold down 0.4 percent at $1,276.73 an ounce by 2:28 p.m. EDT (1828 GMT), after hitting its lowest since Oct. 6 at $1,271.86 in the previous session.

U.S. gold futures for December delivery settled down $2.60, or 0.2 percent, at $1,278.30 per ounce.

 

·         Spot gold has shed 6 percent since touching a one-year high of $1,357.54 on Sept. 8, largely due to a rebound in the dollar on expectations that the Fed will boost interest rates in December.

 

"We'll probably consolidate around $1,275-$1,285 until some Fed news comes out," said a Hong Kong-based trader.

 

·         U.S. President Donald Trump told reporters on Monday he was "very, very close" to making his decision on who should chair the U.S. central bank.                

 

"If a hawkish candidate is chosen, gold futures would most likely come under renewed pressure," Streible said.

  

·         The Fed is expected to raise rates in December and twice next year, according to a Reuters poll of economists, who now worry that the central bank will slow its tightening because of expectations that inflation will remain low.                

 

·         Silver fell 0.6 percent to $16.94 an ounce, after hitting its lowest since Oct. 9 in the previous session.

   

·         Platinum was up 0.4 percent at $924.40 an ounce while palladium was up 0.60 percent at $965 per ounce.