Gold futures finished nearly steady, giving up most of their early gains as the dollar turned up.
The metal could be range-bound for the next few days as the currency and metals markets await the key event for the week, Friday's monthly U.S. employment report, some traders said.
The lightly traded but nearby January gold contract added 40 cents to settle at $1,118.10 an ounce on Tuesday on the Comex division of the New York Mercantile Exchange, while most-active February gold also inched up 40 cents, to $1,118.70.
Gold declined for much of December as speculators sold to exit from positions and square books ahead of year's end. With the start of the new year on Monday, the metal rallied more than $22 an ounce as funds re-entered the market, encouraged by a softer dollar and general willingness to take on risk again, especially after strong manufacturing surveys around the world.
February gold had extended its gain to a nearly three-week high of $1,129.60 in overnight screen trading, which analysts at the time linked to a weaker tone in the U.S. dollar. Investors often buy gold as a hedge against dollar weakness.
The dollar later recovered, however, prompting gold to give back its gains, said Frank Lesh, broker and futures analyst with FuturePath Trading. Shortly after the gold pit closed on Tuesday, the euro had fallen back to $1.4362, from $1.4411 late Monday. Gold later traded slightly lower in after-hours screen trading. One trader said gold didn't have as much ammunition for a rally as on Monday since many funds that wanted to buy again in the new year had already done so.
Silver held on to more of its gains after chart-based buying was triggered, said Craig Ross, vice president of ApexFutures.com. March silver settled up 33.7 cents at $17.80 an ounce.
Meanwhile, April platinum settled up $13.90 to $1,537.80 an ounce. A trader mainly chalked this up to investment-type buying on the coattails of the slightly stronger tone in gold as of platinum's earlier close. March palladium closed up 55 cents at $421.95.
The metal could be range-bound for the next few days as the currency and metals markets await the key event for the week, Friday's monthly U.S. employment report, some traders said.
The lightly traded but nearby January gold contract added 40 cents to settle at $1,118.10 an ounce on Tuesday on the Comex division of the New York Mercantile Exchange, while most-active February gold also inched up 40 cents, to $1,118.70.
Gold declined for much of December as speculators sold to exit from positions and square books ahead of year's end. With the start of the new year on Monday, the metal rallied more than $22 an ounce as funds re-entered the market, encouraged by a softer dollar and general willingness to take on risk again, especially after strong manufacturing surveys around the world.
February gold had extended its gain to a nearly three-week high of $1,129.60 in overnight screen trading, which analysts at the time linked to a weaker tone in the U.S. dollar. Investors often buy gold as a hedge against dollar weakness.
The dollar later recovered, however, prompting gold to give back its gains, said Frank Lesh, broker and futures analyst with FuturePath Trading. Shortly after the gold pit closed on Tuesday, the euro had fallen back to $1.4362, from $1.4411 late Monday. Gold later traded slightly lower in after-hours screen trading. One trader said gold didn't have as much ammunition for a rally as on Monday since many funds that wanted to buy again in the new year had already done so.
Silver held on to more of its gains after chart-based buying was triggered, said Craig Ross, vice president of ApexFutures.com. March silver settled up 33.7 cents at $17.80 an ounce.
Meanwhile, April platinum settled up $13.90 to $1,537.80 an ounce. A trader mainly chalked this up to investment-type buying on the coattails of the slightly stronger tone in gold as of platinum's earlier close. March palladium closed up 55 cents at $421.95.
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