Gold prices started 2017 on a weak note Tuesday, as a stronger dollar and expectations of future rate increases pushed the precious metal lower on the first trading day of the year, says Dow Jones.

Spot gold prices fell 0.18% to $1,148.25 a troy ounce in midmorning trading in London, its lowest price since Dec. 28. The metal spent the holidays in a narrow trading range, and ended the year up about 8% despite a sharp sell off in the final three months of 2016.

Looking forward to the year ahead, "the price performance of precious metals and gold first and foremost will probably be largely determined by interest rate developments and resulting bond yields, and by the U.S. dollar," Commerzbank said in a note.

This morning, the New York futures for Brent rose 1.18% to $ 57.49 WTI up 1.02% to $ 54.27. Thus, the black gold prices rise in anticipation of oil producing cuts worldwide.

Last year, WTI crude oil showed an increase of 45%, the biggest gain in the last seven years. In December, the black gold has increased by more than 8% after the OPEC agreement to lower production volumes.

(raw materials / closing price /% change)

Oil 53.89 +0.32%

Gold 1,152.00 +0.03%