By Steve Gelsi, MarketWatch
NEW YORK (MarketWatch) -- A stronger dollar helped push down gold and crude oil futures on Tuesday, with crude retreating back below the $80-a-barrel level.
The U.S. dollar index rose 0.5% to 80.75, with the greenback pulling investors away from commodity futures.
April 2010 crude oil futures fell $1.33 to $78.98 a barrel in electronic trades on the Nymex. Gold futures dropped 80 cents to $1,112.30 an ounce.
"Oil prices have suffered from some profit-taking after the recent run of the past week," said London-based analysts at Panmure Gordon.
Investors will keep an eye on the December Case-Shiller home price index due out at 9 a.m. ET. At 10 a.m., the Conference Board's February consumer confidence figure is due.
Economic news out of Germany proved disappointing, with a key business gauge falling for the first time in 10 months. See Ifo story.
Overnight, crude futures fell in Asia after five days of gains.
"The current price is too high. It's difficult for oil to go up more," said Mizuho Securities trader Yuichiro Sakaki. "We need more bullish factors to push up prices."
Despite optimism about an economic recovery, the current forces of supply and demand remain bearish, analysts say.
Crude-oil and gasoline stocks are expected to rise by 2 million barrels and 500,000 barrels respectively, according to analyst forecasts. The U.S. Energy Information Administration provides its weekly update on Wednesday.
Technically, oil may hit resistance at $80.80, with support at $78.10, according to analysts from Societe Generale.
