Gold prices edged lower on Tuesday, a day after rising oil prices prompted the yellow metal to climb and recover. Gold is positively correlated to oil, with the precious metal deemed a safe haven against oil-led inflation. The effects of the rising oil prices were countered today by the strong equities market, Reuters reported.

Oil prices have risen due to Washington's decision on Monday to impose an international blanket ban on Iranian oil imports.

Spot gold was at $$1,274.20 per ounce, dropping 0.1 percent. U.S. gold futures traded at $1,275.05 per ounce, falling 0.2 percent.

Strong equities have adversely affected the precious metal's appeal, according to experts cited by Reuters. Gold prices are more than 5% below their highest level reached this year in February.

Positive economic data from Washington and Beijing lessened investors' concerns of an economic slowdown.

Meanwhile, silver was trading at 14.95 an ounce, dropping 0.2 percent.

Source Reuters