Gold Ends Below $1,250/-

(RTTNews) - Gold futures snapped a two-day gain to end lower Tuesday, on profit taking and speculations the Federal Reserve is set to further taper down its quantitative easing program, notwithstanding a weak dollar. For the most part, gold prices tethered due to lack of direction with investors awaiting more economic cues later this week.

Gold for February delivery, the most actively traded contract, slipped $10.10 or 0.8 percent to close at $1,241.80 an ounce Friday on the Comex division of the New York Mercantile Exchange.

Gold for February delivery scaled an intraday high of $1,262.00 and a low of $1,235.10 an ounce.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved up to 797.05 tons from 789.56 tons.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 81.14 on Tuesday, down from its previous close of 81.16 late Monday in North American trade. The dollar scaled a high of 81.39 intraday and a low of 81.04.

The euro traded lower against the dollar at $1.3549 on Tuesday, as compared to its previous close of $1.3553 late Monday in North America. The euro scaled a high of $1.3568 intraday and a low of $1.3518.

In economic news from the eurozone, Germany's economic confidence weakened unexpectedly in January, survey data from the Centre for European Economic Research/ZEW showed. The indicator of economic sentiment fell 0.3 points to 61.7 in January. The score was expected to rise to 64.

Elsewhere, China's short-term interest rates declined on Tuesday after the central bank added funds twice this week ahead of Lunar New Year holiday. The People's Bank of China pumped CNY 255 billion via reverse-repurchase agreement today. The bank also offered funds to large commercial banks on Monday, following a sharp rise in money market rates. The actions aim to ensure adequate liquidity and stability in the financial market.