Gold futures fell by 0.48 percent on Tuesday at the domestic markets from China showed a sharper than expected drop in producer prices, though consumer prices were stronger than expected. Producer prices year-on-year for February fell 4.8 per cent, more than the 4.3 per cent decline expected. But consumer prices year-on-year for the same month rose 1.4 per cent, faster than the 0.9 per cent gain expected. Further, stronger dollar reduced the appeal of the bullion as an alternative asset. Stronger dollar makes the precious metal expensive for those holding other currencies, thus reducing demand.