Gold prices are on a downside correction after hitting a 5-week high in overnight trading, weakened by stronger U.S. dollar index Tuesday.
February Comex gold fell $3.30 at $1,181.60 an ounce.
March Comex silver lost $0.068 at $16.615 an ounce.
Chinese demand for the physical gold is increasing ahead of the Chinese lunar New Year. There was also an increased demand for gold-backed exchange-traded-funds early in 2017.
The market is waiting for President-Elect Trump’s first press conference since his win, on Wednesday.
China saw a soaring inflation rate as its producer prices were up 5.5 percent in December, year on year, and up 3.3 percent from November.