(RTTNews) - The price of gold tumbled to a 3-month low Tuesday morning as its safe haven appeal continued to wane.
Gold for February delivery, the most actively traded contract, lost $19.30 to $1,325.20 an ounce. Yesterday, gold edged up amid a weak U.S. dollar.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved down to 1,260.84 tons from 1,271.77 tons.
Meanwhile, the U.S. dollar was struggling near its 2-month low versus the euro, while moving steeply higher against sterling. The buck dipped to a 3-week low versus the Swiss Franc and ticking lower against the yen.
The British economy unexpectedly contracted in the fourth quarter of 2010, with its gross domestic product declining 0.5 percent, sharply contrasting 0.7 percent growth in the previous quarter.
Elsewhere, the prices of silver and platinum moved lower in morning deals.
The Case-Shiller November index of home prices will be released by 9.00 am. ET. The index is forecast to fall 1.3% in November, after edging down 0.8% in October.
Later during the session, the Conference Board will release its January report on consumer confidence. The index is expected to increase to 54.5 from last month's reading of 52.5.
