Gold futures settled modestly lower on Tuesday, with some sources attributing the loss to the possibility that a viral outbreak may cut demand for the precious metal as China prepares for its New Year celebrations this weekend.

The Chinese tend to buy more gold for the holiday celebration. Other sources, however, said that a further spread of the coronavirus may eventually support haven buying of gold. CNN reported Tuesday that the U.S. was expected to announce its first case of Wuhan coronavirus in the country.

On Tuesday, February gold fell by $2.40, or nearly 0.2%, to settle at $1,557.90 an ounce. It finished off the session's low of $1,546, according to FactSet data.

Source : Marketwatch