2018.11.1314:29:00UTC+00Gold Futures Pare Early Gains, Settle Lower Again

Gold futures recovered some ground after dropping to one-month lows earlier on Tuesday, but still ended the session on a weak note, extending losses to a fourth straight day.

Although the dollar retreated slightly after rising to near 17-month highs, the yellow metal failed to find enough support to hold at higher levels as traders looked for direction.

The greenback gained against most major currencies amid political uncertainties in Europe. Traders were waiting to see whether Italy would submit a revised 2019 budget to the European Commission in line with EU rules, before the end of the deadline tonight. With regard to the Brexit issue, the British Prime Minister Therasa May has stated that there were still considerable unresolved issues with the European Union.

Additionally, gold was weighed down by slightly easing worries about U.S.-China trade disputes after the two countries resumed trade talks.

Gold futures for December ended down $2.10, or 0.2%, at $1,201.40 an ounce, the lowest settlement in about five weeks, after falling to a low of $1,196.70 earlier in the session.

On Monday, gold futures ended down $5.10, or 0.4%, at $1,203.50 an ounce.

Silver futures for December ended down $0.034, at $13.977 an ounce.

Copper futures for December gained $0.0105, settling at $2.6870 per pound.

The U.S. dollar had been moving higher in recent sessions, amid prospects of interest rate hikes. The Federal Reserve, which left interest rate unchanged last Wednesday, hinted at a rate hike in December and gradual rate hikes in the coming year to reach the "neutral rate" of between 2.5% and 3.5%.

And then, the recent data from U.S. Labor Department that showed producer prices to have risen more than expected in October has also raised the prospects of a tighter monetary policy from the Fed.

The market now awaits the data on U.S. consumer price index, due on Wednesday.