Gold prices turned lower on Tuesday, after nearing the prior session's one-month high, as the U.S. dollar, Treasury yields and stock markets extended gains. Spot gold was down 0.3 percent at $1,249.56 an ounce, having touched its highest in a month at $1,261.03 on Monday. We saw investors cycle out of gold but back into equity markets, adding to the pressure on gold. The U.S. dollar rallied above Monday's four-month low against a basket of major currencies, while the 10-year Treasury yield and U.S. stock indexes extended gains. This week, a number of Fed officials made speeches on monetary policy and economic outlook. Fed Vice Chairman Stanley Fischer said two more increases of U.S. overnight interest rates this year seemed "about right" during a television interview. The dollar index is still playing the biggest role in the direction of gold right now
The dollar index rebounded under the key support of 99.2 after last week’s decline. In the meanwhile, gold met resistance at $1,250. If bullion fails to cross above the aforementioned key resistance, it is quite likely to pull back. But its losses would be capped due to French election in the second half of April. The level of $1,220 is expected to provide a floor.
Silver rose 0.1 percent to $18.09 an ounce after hitting $18.23, the highest since March 2. On chart, silver could find hefty resistance at around $18.5. Under the impact of gold in near term, the white metal is expected to see technical rebound with the support at $17.90, if gold regains its ground.

 
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