Gold Prices Edge Lower

"We do urge our clients not to fall into the 'giddy camp' [of] the broad sunlit uplands of recovery in the market," writes Joseph Brusuelas, chief U.S. economist at IDEAglobal, in a research brief. "The two solid months of data, fueled by warmer-than-normal weather, will bite with a vengeance in February and March."

The overall tone in the market was bearish for the greenback, with the dollar trading for 118.97 yen, down from 120.57 yen late Monday. One euro was buying $1.3238, up from $1.3184 previously. Gold prices tend to move up when the dollar loses.

Back in bullion, the European Central Bank says it made net sales of 37 million euros of gold and receivables last week, or about 2.25 tons.

Elsewhere, Credit Suisse was busy in the mining patch. The brokerage upgraded shares of Freeport-McMoRan Copper & Gold(FCX Quote) to outperform from neutral and hiked its target price to $70 from $50. The stock was recently shedding 4.1% at about $59, as metal prices dropped.

Likewise, shares of Barrick Gold(ABX Quote) also received a blessing, upgraded to neutral from underperform. Still, the stock was marked down about 1.9%.

As for base metals, copper was losing 7 cents at $2.80 a pound on the Comex, likely hurt by the weak durable-goods report. Market participants are said to be cautious in anticipation of new trade figures out of Asia.