Gold falls on Greece resolution

Gold futures on the COMEX division of the New York Mercantile Exchange dropped Tuesday as the Greek financial crisis was alleviated.

The most active gold contract for April delivery shed 3.5 U.S. dollars, or 0.29 percent, to settle at 1,197.30 dollars per ounce.

The drop took place as investors moved away from the precious metal's safe haven properties. Investors started buying more lucrative assets as uncertainty decreased in the wake of an overhaul of the Greek financial bailout. The eurozone extended the Greek bailout for an additional four months, putting pressure on gold.

The dollar also fell as Federal Reserve Chair Janet Yellen said she would be patient with raising interest rates, which gave gold a lift. The Dollar Index fell slightly by 0.03 percent to 94.58. The index is a measure of the dollar against a basket of major currencies. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.

Analysts believe that the short-term outlook for gold is negative, and volume will remain low at least until China and other Asian countries return from holiday.

Silver for March delivery lost 6.6 cents, or 0.41 percent, to close at 16.188 dollars per ounce. Platinum for April delivery dropped 0.3 dollar, or 0.03 percent, to close at 1,162.60 dollars per ounce.