Gold prices declined in Europe on Tuesday as the dollar firmed ahead of testimony on Wednesday by Federal Reserve chief Alan Greenspan, traders said. Volumes were subdued by light summer trading conditions, but bullion could be on track to slide initially towards last week's six-week low just below $418 an ounce. By 1023 GMT, spot gold fell to $419.60/420.30, down from a late quote in New York trade of $420.70/421.20. "The gold market is long and the dollar is resurgent and I think our long investors are slightly queasy," David Holmes, vice president at RBC Capital Markets, said. "People are back into dollar-watching." The dollar hit a 14-month high against the yen and rallied against other currencies as comments by key Federal Reserve officials cemented expectations for steady rises in U.S. interest rates.Such an environment is usually bearish for gold as it makes the dollar-denominated precious metal less attractive for holders of other currencies. Fed chairman Alan Greenspan will give his semi-annual testimony to the U.S. Congress on Wednesday. The euro was down 0.5 percent at $1.1984. Traders and analysts both expected gold to attract some light support from physical purchases. "Although with the current glut in appetite from India, that support is likely to have limited impact," James Moore of TheBullionDesk.com said in a report. He said prices looked set to continue lower over the week.