Gold prices declined in North American trade on Tuesday, sliding to the lowest level in around eight weeks amid fading demand for safe-haven assets.
Comex gold futures fell $3.20, or about 0.3%, to $1,224.00 a troy ounce by 8:15AM ET (12:15GMT). Meanwhile, spot gold was at $1,223.50.
The yellow metal hit its lowest since March 16 at $1,221.00 on Monday as safe-haven demand ebbed after market-friendly centrist Emmanuel Macron beat far-rightist Marine Le Pen to clinch the French presidency.
The victory for Macron signaled that political risks in France and across Europe are receding, dampening demand for the yellow metal, which is often used as a hedge in times of political uncertainty.
The widely-watched CBOE Volatility Index, which measures implied volatility of U.S. stock options and is often seen as an investor fear gauge, closed down almost 8% at 9.77 on Monday, its lowest since December 1993.
Meanwhile, the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was stronger for a third consecutive session, gaining 0.4% to a more than two-week high of 99.40 in New York morning trade.
The 10-year Treasury yield rose 1.8 basis points to 2.392%.
Markets are pricing in around an 82% chance of a hike at the Fed's June meeting, according to Investing.com’s Fed Rate Monitor Tool.
The metal is highly sensitive to rising U.S. interest rates, which increase the opportunity cost of holding non-yielding bullion while boosting the dollar, in which it is priced.
Also on the Comex, silver futures dipped 2.4 cents, or 0.15%, to $16.23 a troy ounce. It fell to an overnight low of $16.14, a level not seen since January 3.
Elsewhere in metals trading, platinum slumped 1.2% to $908.65, while palladium inched down 0.3% to $803.45 an ounce.
Copper futures tacked on 0.2 cents to $2.496 a pound, not far from Monday's four-month low of $2.472, amid renewed concern over China's economic health.