Sentiment weakened further as a stronger dollar makes gold expensive for those holding other currencies, thus reducing demand. The U.S. dollar index, a measure of the value of the United States dollar relative to a basket of foreign currencies, was trading 0.10 per cent higher at 79.658 on the Inter-Continental Exchange (ICE) at 11.27 AM IST.
However, losses were limited as House Speaker John Boehner, a Republican who was previously against tax increases of any kind, has shown a willingness to let the tax rate rise on U.S. taxpayers earning more than $1 million per year.
At the Commodity Exchange (COMEX), gold futures for February 2013 delivery traded at US$1,692.3 per ounce, down by 0.28 per cent. It opened at US$1,698.4 against the previous closing price of US$1,697. It touched the intra-day low of US$1,690. (At 11.28 am IST).