COMMODITY TRADING TIPS: Gold futures ended tad lower in the domestic market on Tuesday as investors and speculators resorted to profit-booking after Monday’s stellar rally when prices advanced over 1.7 per cent as heightened tensions in the Middle East amidst a Saudi-Iran diplomatic spat and a China stock rout that sent global financial markets into a tailspin boosted the safe haven demand for the bullion.

Gold traders are also focused on the US Federal Reserve interest rate outlook for 2016 with recent disappointing factory data which showed a slowdown in the world’s biggest economy boosting the Fed’s pledge to stick to a gradual pace of monetary policy tightening, supporting the bullion’s appeal as a store of value.

Gold futures ended higher in the overseas market on Tuesday as tensions between Iran and Saudi Arabia which threatened to escalate into a sectarian crisis in the already fragile Middle –East region, and a China equity slump prompted traders to seek shelter in the safety of the yellow metal.

However, the gains in the bullion were trimmed by a stronger dollar which curbed the lure for gold as an alternative asset. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand.

Gold may trade on a cautious note today ahead of US factory, services, trade and employment data.

At the MCX, Gold futures for February 2016 contract is trading at Rs 25,388 per 10 gram, down by 0.04 per cent after opening at Rs 25,336, against the previous closing price of Rs 25,397. It touched the intra-day low of Rs 25,318.