The price of gold was little changed Tuesday morning as traders await cues from the euro zone finance ministers meet in Brussels for another round of talks on Greece.
Gold for December delivery, the most actively traded contract, edged down $0.70 to $1,733.70 an ounce. Yesterday, gold gained over 1 percent as the dollar weakened on hopes of a settlement that would avert the U.S. fiscal cliff, with President Barack Obama expressing confidence in reaching an agreement with the Congress on spending cuts and tax increases. Investor sentiments improved even as the global equity markets firmed on the efforts from both sides to avert the fiscal cliff.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, eased to 1,342.20 tons from a record high of 1,342.63 tons.
Meanwhile, the U.S. dollar slipped back near a 2-week low versus the euro and lingering near a weekly low against sterling. The buck was hovering around its 7-month high versus the yen, while ticking lower against the Swiss franc.
In economic news from the euro zone, Germany's industrial producer price inflation weakened more than economists expected in October, data released by statistical office Destatis showed. The producer price index rose 1.5 percent year-on-year in October, after gaining 1.7 percent in September. Economists had forecast growth to ease to 1.6 percent.
Meanwhile, data from the Federal Customs Administration showed Switzerland's foreign trade surplus increased notably in October. The trade surplus rose to CHF 2.8 billion in October from CHF 1.93 billion in September. On an unadjusted basis, exports fell 7.7 percent year-on-year in October. This followed a 6.4 percent slump in September.
The prices of silver and platinum were ticking lower in morning deals.
From the U.S., the Commerce Department will release its housing starts data for October at 8:30 am ET. Economists expect housing starts to decline to a seasonally adjusted annual rate of 836,000 in October from 872,000 for September. Building permits, an indicator of future housing activity, is expected to drop to 865,000 from 894,000.
