Gold down on stronger U.S. data, dollar

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Tuesday as U.S. data and the U.S. dollar strengthened.

The most active gold contract for February delivery fell 4.8 U.S. dollars, or 0.39 percent, to settle at 1,210.80 dollars per ounce.

The U.S. Dollar Index rose by 0.43 percent to 100.36 as of 1855 GMT. The index is a measure of the dollar against a basket of major currencies.

Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.

Gold was put under pressure as the Purchasing Managers Index Manufacturing Index Flash report released by U.S.-based Markit Economics showed the PMI at a 55.1 level during the month of January, a figure which analysts note includes new orders strengthening to their highest level since November 2014. The analysts also note that employment is improving.

The precious metal was given support as the existing home sales report released by the U.S.-based National Association of Realtors showed existing home sales decreasing by 2.8 percent in December to a 5.490 million level, with inventory levels reaching a 17-year low.

Analysts note that prices are decreasing as well, with the median price decreasing by 0.9 percent to 232,000 U.S. dollars.

Silver for March delivery fell 0.1 cents, or 0.01 percent, to close at 17.185 dollars per ounce. Platinum for April delivery added 27.9 dollars, or 2.85 percent, to close at 1,007.80 dollars per ounce. Endit