Gold prices fell to six-week lows, under pressure from a strengthening dollar on expectations of further U.S. rate rises. The political uncertainty in Europe is also a reason for this drop. Spot gold was down 0.74 percent to $1,228.81. U.S. gold futures fell 1.52 percent to $1,229.50 an ounce.
A rising U.S. currency makes dollar-denominated commodities more expensive for holders of other currencies, potentially subduing demand for Gold. According to Goldman Sachs, the precious metal may be traded moderately lower. The 3-month target of the bank is is $1,200/oz.