Gold Slips To End Below $1,230

(RTTNews) - Gold futures ended lower for a second straight session Tuesday, after some upbeat trade data from the U.S., with the dollar strengthening against a select band of currencies. Investors also await the outcome of the Fed policy meet due Wednesday and the jobs data later in the week, while tracking rising global equity markets after some better-than-expected trade data from the U.S.

A Commerce Department report on Tuesday showed U.S. trade deficit to have narrowed more than anticipated in November, with the value of exports rising and imports falling.

U.S. trade deficit narrowed to $34.3 billion in November from a revised $39.3 billion in October. Economists expected the trade deficit at $39.9 billion from the $40.6 billion originally reported for the previous month. The deficit was the smallest recorded since the $33.9 billion deficit reported in October 2009.

Gold for February delivery, the most actively traded contract, slipped $8.40 or 0.7 percent to close at $1,229.60 an ounce Tuesday on the Comex division of the New York Mercantile Exchange.

Gold for February delivery scaled an intraday high of $1,244.70 and a low of $1,224.20 an ounce.

Yesterday, gold settled lower on some mixed economic data out of the U.S. and China, even as the dollar weakened against some major currencies. Nonetheless, demand outlook for gold brightened with expectation of increased demand from China linked to its Lunar New Year and on news that India, the world's largest gold consumer, may likely relax curbs on gold import.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 794.62 tons.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.81 on Tuesday, up from its previous close of 80.66 late Monday in North American trade. The dollar scaled a high of 80.95 intraday and a low of 80.60.

The euro traded lower against the dollar at $1.3619 on Tuesday, as compared to its previous close of $1.3628 late Monday in North America. The euro scaled a high of $1.3628 intraday and a low of $1.3598.

In economic news from the U.S, a Commerce Department report showed the trade deficit narrowed to $34.3 billion in November from a revised $39.3 billion in October. Economists expected the trade deficit at $39.9 billion from the $40.6 billion originally reported for the previous month.

From the eurozone, Germany's retail sales expanded by seasonally adjusted 1.5 percent month-on-month in November, after falling for two straight months, provisional data from Destatis revealed. Real retail sales turnover dropped 0.8 percent in October and 0.1 percent in September.

Unemployment in Germany declined in December from a month earlier, the latest data from the Federal Labor Agency revealed. The number of unemployed fell by 15,000 in December while expectations were for no change in the figure. In November, unemployment rose by 9,000.

Meanwhile, eurozone inflation slowed to 0.8 percent in December from 0.9 percent in November, preliminary data from Eurostat showed. The rate was forecast to remain unchanged at 0.9 percent. The European Central Bank is viewing inflation rates of below, but close to, 2 percent over the medium term.

Industrial producer prices in the euro area decreased for the fourth consecutive month in November, but at a slower pace than in October, data from Eurostat showed. The producer price index for the domestic market dropped 1.2 percent annually in November, which was slightly slower than the October's 1.3 percent fall. Economists had forecast a 1.3 percent decrease for November.