In Europe, inflation spiked in Germany as the Federal Statistics office reported that prices increased 2.1% year over year in December. Inflation in the U.K. held steady at 2.7% against a year earlier in December; inflation also remained steady in Italy at 2.6%.
Investors often look to gold as a hedge against inflation.
The euro, which had rallied against the U.S. dollar for the previous three trading sessions, retreated against the greenback for the first time since European Central Bank President Mario Draghi forecast last Thursday a positive outlook for the region by late 2013.
The euro was slipping to $1.3287 against the dollar, which was off the prior day's close at $1.3382.The Fed's Empire State Manufacturing Survey said Tuesday that general business conditions remained in contraction for January with a negative 7.8 reading. December's reading came in at negative 8.10. A flat read for January was expected. Gold mining stocks were mostly higher on Tuesday. Shares of Kinross Gold (KGC - Get Report) were rising 2.7%, while shares of Goldcorp (GG - Get Report) were adding 1.5%. Among volume leaders, Barrick Gold (ABX) was increasing 1.8%. Gold ETF SPDR Gold Trust (GLD) was up 0.85%, while iShares Gold Trust (IAU) was rising 0.92%. -- Written by Joe Deaux in New York. >Contact by Email. Follow @JoeDeaux