Demand for gold dropped; lowest in 1.5 weeks

Even though the dollar value did not fluctuate much the spot gold price was off 0.3% at $1,260.31 an ounce by 0037 GMT, after hitting an early low of $1,259.51, its weakest since April 28. Bullion fell 1.9% on Monday, its sharpest single-day drop since March 23.

Tuesday marked gold`s sixth fall out of seven sessions, having failed to hold above the $1,300 resistance, and not benefitting much from data last week showing that the U.S. economy added the fewest jobs in seven months in April. 

In the world markets however, gold is still up 19 % this year as expectations for a near-term increase in U.S. interest rates has faded.

U.S. gold for June delivery slipped 0.3 % to $1,262.40 an ounce.

Akshaya Tritiya, an Indian gold festival, was celebrated in India on Monday however Indians bought a third less gold than last year, according to industry officials estimate. This may be attributed to droughts which have hit the earnings of millions of farmers and the metal`s price rallied.

The Canadian based gold mine - Eldorado Gold, will resume construction work at a stalled Greek gold mine project after it received approval by Greek authorities.

MARKET NEWS
Asian shares got off to a weak start, pressured by weaker crude oil prices, though Japanese shares got a tailwind as the dollar stood tall against the yen.

The dollar drifted to its highest in nearly two weeks against major currencies while the yen nursed broad losses after showing its biggest one-day fall in more than two weeks on Monday.