Investing.com - Gold prices were lower on Tuesday, as political uncertainty in Europe continued to rattle markets across the globe and the White House announced it was going ahead with Chinese tariffs.
Comex gold futures for June delivery were down 0.54% to $1,296.60 a troy ounce as of 10:42 AM ET (14:42 GMT).
The precious medal was held back as the Italian political crisis continued and Spanish Prime Minister Mariano Rajoy faces opposition in parliament.
Italy's anti-establishment parties abandoned plans over the weekend to form a coalition government after the country's president, Sergio Mattarella, refused to accept their euroskeptic candidate for economy minister. Carlo Cottarelli, a former International Monetary Fund official, was asked to form a new government, with snap elections expected as early as August.
Meanwhile in Spain, Prime Minister Mariano Rajoy faces a confidence vote on Friday over corruption verdicts of people linked with his party.
In the U.S., President Donald Trump moved ahead with trade and investment restrictions on China, including tariffs on $50 billion worth of Chinese goods.
The price of bouillon was also driven lower by the rise in the greenback.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was at a five-month high of 94.65.
Gold is denominated in the U.S. currency and is sensitive to moves in the dollar. Bullion becomes more expensive for holders of other currencies when the dollar rises.
Elsewhere on the Comex, silver futures were down 0.94% to $16.395 a troy ounce. Among other precious metals, Platinum Futures rose 0.67% to $907.30 while Palladium Futures increased 0.41% to $979.70 an ounce. Copper futures inched up 0.11% to $3.081 a pound.