Gold prices drop over 2% in selloff sparked by strong dollar

Dollar's 1.4% rise makes gold more expensive for overseas buyers; market focus on minutes of Fed June meeting on Wednesday

Gold lost more than 2% on Tuesday to sink further below the $1,800 support level as a sharp rally in the dollar and rising interest rates sapped appetite for the non-yielding asset.

Spot gold was trading at $1,765.22 per ounce by 1:45 p.m. ET (1745 GMT), having earlier declined as much as 2.6%.

U.S. gold futures settled down 2.1% at $1,763.9 per ounce.

Making the safe-haven metal less appealing for overseas buyers, the dollar hit its highest in about two decades and firmed its position as the preferred refuge for investors worried about a potential recession.

"There are more attractive alternatives" to gold in