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Gold closed lower for a seventh straight session, hurt by a stronger dollar and lower crude oil prices. December gold ended at $792.00, down $10.50 on the session, its lowest closing mark of 2008. Gold touched as low as $780.20 earlier in the day. 

The precious metal has lost more than $45 an ounce in the slump. On a longer-term basis, gold has dropped more than $240 an ounce from its record high of $1,033.90 from March 17.

The dollar extended its long-term highs versus the euro and sterling in overnight dealing. The greenback hit a new 11-month best against the euro and reached a fresh 2 1/2-year high versus the pound. Gold generally moves opposite the dollar because of the precious metal`s hedge appeal.

Gold prices turned lower on Monday and closed down 30 cents on the session. The metal fell $32.40 last week as the dollar moved to a multi-year high against the British pound and a multi-month best against the euro in recent days. Gold gained Friday morning as the greenback fell amid the release of employment data in the U.S. But the dollar was able to recoup much of its daily slump.

Gold`s hedge value took a further hit on Tuesday as oil prices fell again amid indications the Organization of Petroleum Exporting Countries will leave production unchanged at its meeting. Prices touched as low as $103.71 earlier in the morning.

The hurricane season in the Atlantic is being closely watched. Hurricane Ike is expected to move into the Gulf of Mexico on Tuesday. That region was hit last week with Hurricane Gustav and, although the damage was not as bad as many had feared, a hit by Ike could delay repairs.

On the economic front Tuesday morning, the Department of Commerce released a report showing that wholesale inventories increased by 1.4 percent in July following a downwardly revised 0.9 percent increase in June. The increase exceeded economist estimates of an increase of about 0.7 percent.

Meanwhile, a report released by the National Association of Realtors showed that pending home sales fell 3.2 percent in July following an upwardly revised 5.8 percent increase in June. Economists had expected pending home sales to fall by 1.4 percent compared to the 5.3 percent increase originally reported for the previous month.