2020.01.2118:27:00UTC+00Gold Futures Settle Modestly Lower

Gold prices edged lower on Tuesday, giving up early gains, as traders weighed the impact of the coronavirus outbreak in China on the demand for the yellow metal. A downward revision on global growth forecast by the International Monetary Fund weighed as well on the commodity.

Easing concerns about tensions in the Middle East too contributed to gold's decline.

Gold futures for February ended down $2.40, or about 0.2%, at $1,557.90 an ounce.

Gold futures for February ended up $9.80, or about 0.6%, at $1,560.30 an ounce on Friday. There was no settlement for gold futures contract on Monday due to holiday for Martin Luther King Jr Day.

Silver futures for March ended down $0.265 at $17.808 an ounce, while Copper futures for March settled lower by $0.0520 at $2.7935 per pound.

On Monday, the International Monetary Fund cut the global growth forecasts for this year and next, mainly due to the weaker-than-expected expansion in India.

Global growth for this year is projected at 3.3%, which is 0.1 percentage point less than the forecast made in October, the international lender said in the latest update to its World Economic Outlook report.

The growth rate is projected to rise to 3.4% next year, which is 0.2 percentage points less than the October forecast. The growth estimate for 2019 was lowered to 2.9% from 3%.

The World Economic Forum in Davos was in focus. Traders were also looking ahead to the European Central Bank's monetary policy meeting.