Gold futures drop for 2nd straight session

Gold futures on the COMEX division of the New York Mercantile Exchange dropped on Tuesday for a second session in a row, mostly pressured by a rise in U.S. equities.

The most active gold contract for June delivery fell 2.7 U.S. dollars, or 0.21 percent, to settle at 1,296.3 dollars per ounce. Some analysts say, investors opted for the much riskier equity assets after some soft, below expectation consumer confidence data from the United States weighed on the gold trading on the day.

The U.S. consumer confidence index fell to 82.3 in April from a revised 83.9 in March, reflecting a less favorable assessment of current business and labor market conditions, showed data released by the Conference Board on Tuesday.

The upward revision in March put the index in that month at the highest level since January 2008. But the April reading still fell short of Wall Street forecasts. In addition, traders say, investors also await the outcome of the two-day U.S. Federal Open Market Committee meeting beginning Tuesday.

The U.S. dollar index, which tracks the greenback against its six major rival currencies, traded at 79.80 on Tuesday, up from its previous close of 79.70 late Monday in North American trade. Silver for July delivery fell 8.1 cents, or 0.41 percent, to close at 19.538 dollars per ounce.