Gold falls sharply on strong dollar, low oil prices

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Tuesday as the U.S. dollar gained and oil prices retreated.

The most active gold contract for December delivery fell 18.7 U. S. dollars, or 1.54 percent, to settle at 1,199.4 dollars per ounce.

Gold slipped following gains in the dollar as the greeback rallied 0.7 percent against the yen and 0.71 percent against the euro. The rise of the dollar was supported by a retreat in oil prices that have helped to lift it against commodity-linked currencies. The crude prices retreated Tuesday amid worries that global supplies surpassed demand as the Organization of Petroleum Exporting Countries (OPEC) didn't cut its output at its meeting last week.

Light, sweet crude for January moved down 2.12 dollars to settle at 66.88 U.S. dollars a barrel on the New York Mercantile Exchange.

Some analysts say that these increasingly positive signs from the U.S. economy could lead to a tightening of monetary policy sooner in 2015 than earlier anticipated.

The U.S. Department of Commerce released a better-than-expected report on Tuesday that showed North American-made cars and light truck unit sales rising almost 200,000 to a 13.5 million annual rate.

Silver for December delivery lost 23.6 cents, or 1.41 percent, to close at 16.456 dollars per ounce. Platinum for January delivery lost 24.1 dollars, or 1.94 percent, to close at 1,217.5 dollars per ounce.