Gold Ends Higher On Continued Safe Haven Appeal

(RTTNews) - Gold futures extended gains from the previous session to end higher on Tuesday, as investors sought the safe haven of the precious metal on mounting speculation that Greece would likely exit the eurozone and over continued uncertainties linked to crude oil's plunge to new depths.

The precious metal has also benefited from some disappointing U.S. economic data today, with weaker than expected results for both factory orders and the service sector.

With orders for durable and non-durable goods falling, the Commerce Department's report showed new orders for U.S. manufactured goods dropped more than expected in November.

Meanwhile, activity in the U.S. service sector grew at a notably slower rate in December, touching a six-month low, a report from the Institute for Supply Management showed Tuesday.

A Greek exit could set off a domino effect where other eurozone members struggling to cope with austerity decide to leave the currency bloc as well.

Gold for February delivery, the most actively traded contract, jumped $15.40 or 1.3 percent to settle at $1,219.40 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday.

Gold for February delivery scaled an intraday high of $1,223.30 and a low of $1,201.60 an ounce.

On Monday, gold prices ended at $2,204.00 an ounce, up $17.80 or 1.5 percent, on worries over Greece and plunging oil prices.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved higher to 710.81 tons on Tuesday, from its previous close of 709.02 tons.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 91.40 on Tuesday, up from its previous close of 91.37 late Monday in North American trade. The dollar scaled a high of 91.68 intraday and a low of 91.12.

The euro trended lower against the dollar at $1.1931 on Tuesday, as compared to its previous close of $1.1932 late Monday in North American trade. The euro scaled a high of $1.1971 intraday and a low of $1.1885.

In economic news, a Commerce Department report showed new orders for U.S. manufactured goods dropped by 0.7 percent in November, matching the decrease seen in October. Economists expected orders to drop by about 0.6 percent.

The Institute for Supply Management Tuesday said its non-manufacturing index dropped to 56.2 in December from 59.3 in November. Economists expected the index to show a more modest drop to 58.0.

Germany's service sector logged a moderate growth in December, final survey data from Markit Economics showed Tuesday. The seasonally adjusted services Purchasing Managers' Index remained unchanged at 52.1 in December, with the flash estimate indicating the index at 51.4. Nonetheless, the average reading for the fourth quarter was the weakest since the third quarter of 2013.

Elsewhere in Europe, the British service sector growth eased more than expected to a 19-month low in December on some weak activity and new business, a survey by Markit Economics and the Chartered Institute of Purchasing and Logistics showed Tuesday.

The seasonally adjusted Markit/ CIPS Purchasing Managers' Index showed a notable drop to 55.8 in December, the lowest since May 2013, from 58.6 in the previous month. The index was forecast to fall marginally to 58.5.

Meanwhile, the French service sector returned to growth in December, final data from Markit Economics showed Tuesday. The final services Purchasing Managers' Index rose to 50.6 in December from 47.9 in November. According to preliminary estimate, the sector contracted in December, with reading at 49.8.