Gold prices fell to a three-week low on Tuesday, as demand for riskier assets drove stocks higher and the dollar hit a six-week peak against the yen. "Risk appetite is back," said Societe Generale analyst Robin Bhar. Rising share prices increase the opportunity cost of holding non-yielding bullion, while a stronger dollar makes gold more expensive for holders of other currencies.

Spot gold was down 0.1 percent at $1,255.43 an ounce by 2:28 pm EDT (1828 GMT), having earlier hit $1,251.37, the lowest since April 10 and around the 200-day moving average. US gold futures settled up 0.1 percent. "The moving averages tell us objectively that the long-term trend is no longer bearish. However, gold is yet to break down its long-term bearish trend line, which again held in early April," said Fawad Razaqzada, technical analyst with Forex.com.

In other precious metals, silver was down 0.4 percent at $16.78 an ounce, after touching $16.75, its lowest since Jan. 27. It has fallen for 11 out of the past 12 sessions, putting the spot price on track for the most technically oversold level on a 14-day relative strength index since November 2015. Platinum was 0.03 percent lower at $924.70, after falling to a four-month low at $919. Palladium was down 0.2 percent at $813.25. The metal used in the automotive industry for emission-controlling catalytic converters is near a two-year high, but car sales are too weak to sustain it, said Julius Baer analyst Carsten Menke.

Copyright Reuters, 2017