Gold Futures Settle Lower As Dollar Advances

Gold prices drifted lower on Tuesday as the dollar recovered after a mid morning setback.

Weak GDP data from China contributed to the drop in demand for the yellow metal.

The dollar index, which dropped to 101.94 after staying firm in the Asian session, climbed to 102.51 a little past noon, and was last seen at 102.43, up 0.22% from the previous close.

Gold futures for February ended lower by $11.80 or about 0.6% at 1,909.90 an ounce.

Silver futures for March ended down $0.304 at $24.068 an ounce, while Copper futures for March settled at $4.2230 per pound, up $0.0070 from the previous close.

Traders also focused on the ongoing World Economic Forum in Davos, Switzerland.

IMF Managing Director Kristalina Georgieva said at the WEF that global economic growth will bottom out this year.

The focus now shifts to the Bank of Japan’s policy-setting meeting on Wednesday amid speculation the central bank might call for an exit from its decade-long ultra-loose monetary policy on Wednesday.

The New York Federal Reserve released a report showing a significant contraction in regional manufacturing activity in the month of January.

The New York Fed said its general business conditions plunged to a negative 32.9 in January from a negative 11.2 in December, with a negative reading indicating a contraction. Economists had expected the index to climb to a negative 4.5.