The price of gold dropped $20.40 to $733.70 per ounce in midday trading on the New York Mercantile Exchange. The dollar, which has been on a downward spiral, gained against several major currencies, including the euro.

Michael Mapa, editor of precious metals investing Web site insidemetals.com, noted the dollar-euro relationship and the price of gold are closely linked. A falling dollar supports higher gold prices, as each is traditionally treated as a hedge against the other.

Another major sign of inflation also took a breather Tuesday, as the price of oil fell below $80 a barrel.

The drop follows several weeks of gains for gold prices and gold stocks amid concerns about the broader economy.

Still, Mapa said he expects the price of gold will recover. Demand for the metal is still strong, while falling production levels mean supplies are somewhat limited, he said.

AngloGold Ashanti Ltd. shares lost $1.40, or 3.1 percent, to $43.46, Barrick Gold Corp. shares dropped $2, or 4.9 percent, to $39.23 and Newmont Mining Corp. shares lost $1.29, or 2.8 percent, to $44.73.

Gold Fields Ltd. shares lost 65 cents, or 3.5 percent, to $17.70, Agnico-Eagle Mines Ltd. shares declined $1.83, or 3.6 percent, to $49.25 and Randgold Resources Ltd. fell $1.65, or 4.9 percent, to $31.94.

Lihir Gold Ltd. shares fell $1.96, or 5.3 percent, to $35.32 and Harmony Gold Mining Co. shares fell 76 cents, or 6.4 percent, to $11.14.