LONDON: Gold prices fell more than 2 per cent on Tuesday as strength in the dollar following forecast-beating US retail sales data pushed it through key chart levels while silver hit a 2-1/2 month low.

Selling accelerated sharply after gold prices broke through their 200-day moving average at $1,300 an ounce, having already picked up steam on a break of the 50-day simple moving average at $1,317, and of $1,307, formerly a resistance level.

Spot gold hit a low of $1,290.34 an ounce and was down 2.6pc at $1,291.40 an ounce at 1246 GMT, on track for its biggest one-day drop since Oct. 1.

On Monday it hit a three-week high at $1,330.90, but buyers were quick to cash in gains.

US gold futures for June delivery were down $35 an ounce at $1,292.50.

Silver prices tracked gold lower, hitting their lowest since Feb. 4 at $19.24 an ounce, down 3.4pc. They were later at $19.31 an ounce, down 3.1pc.

Palladium fell more than 2pc after five straight days of gains. Spot palladium was down 2.6pc at $785.50 an ounce, while spot platinum was down 2.4pc at $1,425 an ounce.