Gold prices traded higher on Tuesday, continuing the upward movement started yesterday. Spot gold rose to $1,214.30 a troy ounce in morning European trade. Gold price increased as concerns over the economy in the Eurozone and political uncertainty in Greece weighed on stocks. Yesterday's inflation data from the Eurozone showed that German preliminary consumer price index decreased to 0.2% in December from 0.6% in November, missing forecasts for a decline to 0.4%. That was the lowest level since October 2009.

Investors speculate that the European Central Bank could decide on its policy meeting on January 22 to purchase government bonds.

There is also speculation that Greece could leave the Eurozone. Greeks will elect new parliament later this month. If a left-wing government wins Greek parliament elections, it may cancel austerity measures and may renegotiate Greece's debt.