Gold on Tuesday fell to the lowest in a week as a stronger dollar curbed demand for a protection of wealth. Gold dropped 0.8 percent to $1,276.35 an ounce. It reached $1,274.75, the lowest since August 25. Silver also fell 0.5 per cent to $19.37 an ounce.
The dollar reached a seven-month high against 10 major currencies before data today that economists say will show US manufacturing held last month near the highest since April 2011.
The greenback has strengthened amid prospects for an improving economy that supports the case for the Federal Reserve to raise interest rates. Meanwhile, gold slid 28 per cent last year on expectations that US stimulus would slow. Prices rose 6.2 per cent this year, partly amid geopolitical tension.