Gold Moves Lower with Oil

Precious metals were split on Tuesday as silver gained while gold and platinum dropped along with oil. New York gold and platinum futures dipped 0.6 percent and 0.9 percent respectively. Silver rose 1.6 percent.

February crude-oil fell 99 cents, or 2.5 percent, to close to $39.03 a barrel. The average price for unleaded gasoline dropped three-tenths of a penny to $1.616 a gallon, according to AAA.

March silver gained 17 cents to close at $10.98 an ounce.

January platinum fell $8 to end at $909.90 an ounce.

Gold for February lost $5.30 to settle at $870 an ounce.

"Bullion trading continued on the thin side in New York with gold off by $11 at $869.60 per ounce at last check -practically where it started the day, as players squared logbooks and will close out the year with an early departure tomorrow," said senior analyst Jon Nadler at Kitco Bullion Dealers.

"The tally for the year-on-year gain in gold stands at 3.67% as of today," added Nadler

Gold, considered a hedge during times of high inflation and economic uncertainty, tends to follow oil and move opposite to the U.S. dollar. A rising greenback makes dollar-denominated commodities, like bullion, more expensive for holders of other world currencies. When prices are falling and economic activities are shrinking, gold prices tend to move lower.

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