FX.co ★ Gold Futures Pare Early Gains, Settle Flat

Gold futures failed to hold early gains and settled roughly flat on Tuesday as the dollar recovered from lower levels.

The dollar index, which fell to 105.34 after data from the Labor Department showed producer prices in the U.S. crept up by much less than expected in the month of October, rallied to 106.70, gaining marginally over its previous close.

Gold futures for December ended lower by $0.10 at $1,776.80 an ounce, coming off the session's high of $1,791.80.

Silver futures for December ended down $0.595 at $21.518 an ounce, while Copper futures for December settled at $3.8200 per pound, down $0.0135 from the previous close.

Data from the Labor Department showed producer prices in the U.S. crept up by much less than expected in the month of October. The data said the producer price index for final demand inched up by 0.2% in October, matching a revised uptick in September.

Economists expected producer prices to climb by 0.5% compared to the 0.4% increase originally reported for the previous month.

The report also showed the annual rate of producer price growth slowed to 8% in October from 8.4% in September. The year-over-year growth was expected to edge down to 8.3%.

Following last week's tamer-than-expected consumer price inflation report, the data has added to optimism about the Federal Reserve slowing the pace of interest rate hikes as soon as next month.