Gold drops slightly on technical correction

Gold futures on the COMEX division of the New York Mercantile Exchange fell Tuesday on technical correction, but the fall was somehow limited due to tensions in Ukraine and uncertainty in US equities market.

The most active gold contract for June fell 0.7 US dollar, or 0.05 percent, to settle at 1308.6 per ounce.

Market analysts believe that the situation in Ukraine will continue to deteriorate and thus provide support to safe-haven gold through May at the expense of euro and equities. They hold that in the short term, gold will remain very firm and have a significant long-term bullish trajectory dotted by frequent profit taking during the steady rise.

Positive economic data released Tuesday also helped gold's fall. US Department of Commerce reported that US trade deficit fell by 3.6 percent to 40.4 billion dollars in March as US increased its exports of gas, oil and commercial aircraft.

Federal Reserve Chairwoman Janet Yellen is scheduled to appear before a joint Congressional session on Wednesday and before the Senate Budget Committee on Thursday. Investors hope she will provide some clarity on how fast the US central bank will reduce its bond-buying program.

Silver for July delivery gained 7.4 cents, or 0.38 percent, to close at 19.645 dollars per ounce. Platinum for July delivery gained 9.7 dollars, or 0.67 percent, to close at 1458.1 dollars per ounce.