Gold fell to a three-month low on Tuesday, pressured by the dollar’s rise to its highest in nearly 12 years and renewed expectations of a midyear interest rate increase in the United States.

Spot gold dropped to its lowest since Dec. 1 at $1,155.60 an ounce in early trading and was down 0.4 percent at $1,161.55 by 2:09, while U.S. gold for April delivery settled down $6.40 an ounce at $1,160.10.

Platinum fell to its lowest since July 2009 at $1,124 an ounce. The metal has dropped 6.3 percent since the start of the year on expectations of lower demand from the automotive sector and higher mine supplies.

The dollar climbed to its highest since September 2003 against a basket of major currencies, making gold more expensive for holders of other currencies.

Investor positioning indicated a bearish outlook. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.43 percent to 753.04 tonnes on Monday.

Source: Reuters