Gold futures remained under pressure on Tuesday in reaction to raising concerns over the global economy. Investors were concerned after the Institute for International Finance issued a warning of disorderly default by Greece. According to the trade group the default could cause the damage of 1 trillion euros in the euro region’s economy. The figure presented by the trade group also includes the bailout aid of 160 billion euros for Italy and Spain.

Gold futures contract for April delivery fell 1.9 percent or $31.80 to settle at $1,672.10 per ounce on Comex trading session of the New York Mercantile Exchange. This was lowest for gold since January 24^th, 2012. For the current year the precious metal has gained 6.7 percent till now while has fell 2.3 percent in the current month.

Other than stronger dollar, disappointing outlook for the China kept commodities under pressure. Analysts from Commerzbank commented, “[Monday] showed clearly that there is still a correlation between gold and risky assets such as equities and industrial commodities, this is probably due to investors with a short-term horizon selling long positions on the futures market.”

Among other metals, silver futures for May delivery fell 2.7 percent or $0.91 to settle at $32.78 per ounce. Copper futures for the same month delivery declined 3.2 percent or $0.12 to settle at $3.74 per pound.

Platinum futures contract for April delivery fell 3.1 percent or $50.70 to settle at $1,611.90 per ounce while palladium futures for June delivery slipped 5 percent or $35.35 to $671.61 per ounce.