SAN FRANCISCO (CBS.MW) -- Gold futures logged a loss of nearly...

SAN FRANCISCO (CBS.MW) -- Gold futures logged a loss of nearly $6 an ounce Tuesday to close at their lowest level since late November, and key indexes for mining shares ended at their lowest levels in over a week.
More cool charts on $XAU

NEWS FOR $XAU
Gold falls nearly $6 to end at a fresh three-month low
Mining shares stage broad-based rally
Rising oil prices boost energy, hurt airlines
The "euro, or more precisely the U.S. dollar strength recovery," will continue to dominate the market and "hang over the gold price as a Damocles sword," said Frederic Panizzutti, an analyst at MKS Finance in Geneva.

On the New York Mercantile Exchange, gold for April delivery fell $5.80 to close at $393.80 an ounce -- its lowest closing level in over three months. Earlier, the contract, which climbed almost $3 Monday, touched an intraday low of $391.20 an ounce.

The dollar richened Tuesday on perceptions that the key payrolls report coming on Friday will show solid U.S. jobs growth, with the greenback's move in turn luring investors away from the metals market. See Currencies Report.

"Friday's employment number looms large because if they finally get it right and there is reported job growth, the dollar rally could continue," said Peter Grandich, editor of The Grandich Letter.

Ahead of the economic data, "increasing confidence in the health of the U.S. economy and mounting speculation of a rate cut by the [European Central Bank] has put gold back under pressure," said James Moore, an analyst at TheBullionDesk.com in London.

"Further dollar gains could soon see a test of $385," and if gold futures fall below that level, the move could "lead a change in longer-term sentiment," he said in a note to clients.

But for now, "the ongoing economic uncertainties in the U.S., European and Japanese economies will remain the dominating force in determining short-term sentiment," he said.

Longer term, "all the negatives for the dollar still exists but the pressure is now on us gold bulls to prove our worthiness by not crashing and instead build a base here down to $385," said Grandich.