US gold futures lost ground on Tuesday, slipping after crude oil prices fell and investors unwound the safe-haven play to take profits after the previous session launched prices to a 2-1/2-month high amid renewed Middle East violence, traders said.
Gold for February delivery was down $1.70, or 0.19 percent, at $873.60 an ounce on the Comex division of the New York Mercantile Exchange at 9:32 am EST (1432 GMT). The range spanned $864.70 to $885.90, after gold reached its highest since October 10 at $892 on Monday.
US trading desks remained lightly staffed ahead of the New Year holiday on Thursday. Comex estimated February gold volume at 20,945 lots by 9:23 am (1423 GMT). Gold was pressured as traders took profits after the day-earlier run up when Israel's attacks on Hamas caused some investors to rush to the yellow metal as a safety play - traders. By Tuesday, some investors shrugged off the Middle East violence and sold gold as well as oil, traders said.
Crude oil fell below $40 a barrel when a gloomy demand outlook outweighed concerns about the conflict between Israel and Hamas. Spot gold was slightly lower at $872.50/874.30 an ounce from $874.25/$877.25 in late Monday business. March silver renewed its upswing to gain 15.0 cents at $10.96 an ounce, a 1.39 percent rise. The range reached up to $10.97 from $10.65 an ounce.
Spot silver reversed course to turn up to $10.88/10.96 an ounce from $10.75/10.85 late Monday in New York. Nymex January platinum slid $17.60 to $900.30 an ounce. Spot platinum lost ground to $896.00/$906.00. Nymex March palladium moved down $4.75 to $182.25 an ounce. Spot palladium was lower at $180.00/185.00.