Gold prices edged lower, breaching the $1670 mark, pressured by a strengthening U.S. dollar. The dollar’s appreciation typically exerts downward pressure on gold, as the two often exhibit an inverse correlation.

The spot price of gold fell to $1,668.49 an ounce. U.S. gold futures also declined, settling at $1,673.40 an ounce.

The dollar index, which measures the greenback against a basket of major currencies, rose. A stronger dollar makes gold more expensive for holders of other currencies, potentially dampening demand.

Market participants are closely monitoring economic data releases and currency movements for further clues about the trajectory of gold prices. Investors are also weighing the potential impact of central bank policies on the precious metal.