Gold Ends A Tad Higher On Mixed Data, Weak Dollar

(RTTNews) - Gold futures ended higher on Tuesday, as the dollar trended lower on some mixed data from the U.S. with gross domestic product increasing more than previously estimated in the third quarter, although consumer confidence deteriorated unexpectedly in November.

Some upbeat data from Europe also limited the precious metal's uptick, with revised estimates from the German Federal Statistical Office showing the German economy to have expanded 0.1 percent sequentially in the third quarter, confirming the European powerhouse managed to avoid a recession.

Economic activity in the U.S. unexpectedly increased by more than previously estimated in the third quarter, a report from the Commerce Department showed Tuesday.

Nevertheless, consumer confidence in the U.S. unexpectedly deteriorated in November, a report from the Conference Board showed Tuesday. Meanwhile, home prices in major U.S. metropolitan areas experienced a broad based slowdown in September, a Standard & Poor's report said Tuesday.

Gold for December delivery, the most actively traded contract, moved up $1.40 or near 0.1 percent to settle at $1,197.10 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday.

Gold for December delivery scaled an intraday high of $1,202.20 and a low of $1,189.00 an ounce.

On Friday, gold futures ended lower despite a weak dollar, on some largely strong global equity markets prompting investors to seek riskier assets.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, remained unchanged at 720.91 tons on Tuesday from its previous close of 723.01 tons.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 87.88 on Tuesday, down from its previous close of 88.15 late Monday in North American trade. The dollar scaled a high of 88.33 intraday and a low of 87.82.

The euro trended higher against the dollar at $1.2478 on Tuesday, as compared to its previous close of $1.2442 late Monday in North American trade. The euro scaled a high of $1.2487 intraday and a low of $1.2404.

In economic news, U.S. gross domestic product increased 3.9 percent in the third quarter compared to the previously reported 3.5 percent increase. The upward revision came as a surprise, with economists expecting the pace of GDP growth to be downwardly revised to 3.3 percent.

Home prices in major U.S. metropolitan areas experienced a broad based slowdown, with the S&P/Case-Shiller 20-City Composite Home Price Index rising at an annual rate of 4.9 percent in September compared to the 5.6 percent growth seen in August. Economists expected the pace of growth to slow to 4.7 percent.

The Conference Board's consumer confidence index for November dropped to 88.7 from a downwardly revised 94.1 in October. Economists expected the index to climb to 96.5 from the 94.5 originally reported for the previous month.

Meanwhile, the Organisation for Economic Co-operation and Development (OECD) said Tuesday any prolonged stagnation in the euro area could hurt global growth and stronger policy responses are needed to avoid such risks. In its latest Economic Outlook, the Paris-based think tank also said any prolonged stagnation in the euro area could have knock-on effects on other economies through trade and financial links.