Gold prices eased in the international markets on Tuesday after touching a US$2,000 an ounce resistance level in the previous session.
As the dollar soared to a two-year high, US gold futures fell 0.3% to US$1,981 on Tuesday, while spot gold fell by 0.1% to US$1,976 per ounce.
Gold and silver rose to a one-month high on Monday, with gold rising to $1,998.10 an ounce and silver crossing US$26 per troy ounce levels, helped by haven demand and inflation concerns as the Ukraine crisis drags on.
The advance came despite a jump in benchmark 10-year US Treasury yields to the highest since December 2018 and a stronger dollar, which usually dampens overseas interest in gold.
Gold is regarded as a safe store of value during times of inflation, but a stronger dollar makes greenback-priced gold more expensive for holders of other currencies during times of political and economic crisis.
Stephen Innes, managing partner at SPI Asset Management, told Reuters the US$2,000 price testing will be a bit of a wake-up call for more traditional gold buyers, as well as momentum owners, with fears over the economic downturn in the US also impacting gold prices.
However, another analyst noted gold has the ability to overcome the US dollar strength and break above US$2,000 possibly over the next week or so.
The rise in crude oil prices is likely also benefiting gold, as prices for crude are well above US$100 a barrel.