Gold futures fell on Tuesday, erasing earlier gains after the dollar rebounded against the euro putting further strain on the economy and reducing the appeal of the precious metal.
Gold futures for February delivery ended down 80 cents, or 0.1 percent, at $902.6 an ounce on the Comex division of the New York Mercantile Exchange. The precious metal surged to an intraday high of $916.1 an ounce earlier in electronic trading, which was $50 higher than last Monday's closing.
The dollar climbed against the euro after earlier trading near record lows. Crude-oil futures dropped as much as 3.4 percent or $2.30 to end at $91.90 a barrel.
The dollar index, which tracks the value of the greenback against other major currencies, fell to 75.2 on Tuesday, the lowest level in over six weeks.
A slowing economy may force the Federal Reserve to cut borrowing costs, weakening the U.S. currency.
While U.S. retail sales unexpectedly dropped in December, making 2007 the weakest year since 2002, and prices paid to producers rose the most since 1981, government reports showed today.
In 2007, Gold gained 31 percent last year, while the dollar dived 9.5 percent against the euro and oil rose 57 percent.
Also on the Nymex, prices of other metals futures were mixed. Silver futures for March delivery dropped 12.5 cents, or 0.8 percent, to $16.30 an ounce. The metal gained 15 percent last year. March silver lost 12.5 cents to $16.3 an ounce.
January platinum gained $9.7 to $1,592.5 an ounce. March palladium lost $4.95 to $382.5 an ounce, and March copper edged 9.75 cents lower to $3.2415 a pound.