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Gold failed to cash-in on a weaker US dollar Tuesday, with the metal under pressure from investor selling.
The yellow metal ended 45 cents lower at US$1,186.55/oz in London, its fifth consecutive close in the US$1,185-1,188/oz range.
Gold hit a nine-month low of US$1,185.35/oz on November 23, on dollar strength and rising US bond yields following president-elect Donald Trump's pledge to greatly increase infrastructure spending.
The metal remained under pressure despite the greenback trading below the 94.5 euro cents mark for most of the day.
INVESTOR VS PHYSICAL DEMAND
Pressure on prices has stemmed partly from investors liquidating long contracts and from declining ETF (exchange traded fund) holdings, Metal Bulletin's James Moore said.
But physical demand has picked up due to seasonal jewelry demand and coin and bar buying by retail investors, he added.
"Dip-buying from the physical sector continues to provide underlying support but we maintain our view that gold will remain under modest pressure in the short term, at least until the December FOMC [Federal Open Market Committee] meeting," Moore said.
Gold may be supported by fears over Sunday's (Dec 4) Italian referendum, with Prime Minister Matteo Renzi seeking changes to senate representation, Kitco's Peter Hug said. "The uncertainty ahead of the referendum should create a floor for gold," he added.
Silver closed Tuesday 14 cents lower at US$16.54/oz.