In Mcx Gold on Tuesday traded firmly below $1,200 an ounce as the dollar was perched at a near nine-year high versus a basket of major currencies, undermining the metal's appeal as a hedge. Spot gold was little changed at $1,182.40 an ounce by 0019 GMT, after losing 1 per cent on Monday.The US dollar hit fresh highs against the euro on Monday, while the dollar index, which measures the greenback against a basket of six major currencies, hit its highest since April 2006.
Also hurting gold was stronger equities. Shares edged higher in major markets on Monday, while crude oil prices tumbled after a short-lived bounce. The US benchmark S&P 500 closed at a record high.Bullion trading volumes were thin due to the Christmas and year-end holidays. Floor trading for CME Group's precious metals futures and options products will be closed on Jan. 1.
Crude oil prices on tumbled Monday, with global grades settling down more than $1 a barrel after an early rally fizzled and prices fell to their lowest levels since May 2009. Global benchmark Brent crude settled down $1.57 at $57.88. U.S. crude settled down $1.12 at $53.61 a barrel, following Brent downward. Oil prices this year are on track for the biggest decline since 2008 and the second-biggest annual fall since futures started trading in the 1980s.