Gold prices fell Wednesday after favorable economic news helped boost the greenback. Contracts for February delivery closed down $1.60 at $613.40 on the Comex division of the New York Mercantile Exchange. The recently launched Powershares DB Gold exchange-traded fund ( DGL) was off about 0.1%. The bullion ETFs, streetTracks Gold Shares ( GLD) and iShares Comex Gold Trust ( IAU), both were down about 0.3%. "The story today was the stronger U.S. dollar," says Bernard Hunter, director of precious metals at Toronto-based bullion bank ScotiaMocatta. Prices for gold tend to head lower as the dollar moves up in value. "But there has been some good physical demand on the drops, and that has stopped gold falling too far," Hunter adds. Sparking the dollar rally was a Commerce Department report that the November trade deficit unexpectedly narrowed from October. The November trade deficit totaled $58.2 billion, down from a revised October figure of $58.8 billion. Economists had expected the deficit to swell to $59.5 billion. The news was enough to help bolster the U.S. currency. One euro would recently buy $1.2936, down from $1.30 late Tuesday. Elsewhere, the U.S. dollar was recently buying 119.63 yen, up from 119.4 yen previously. Despite the day's gold drop, one economic bull took a longer-term prospective and forecast a surge in the metal's prices.