Why does traceroute from the command line work, but traceroute via Network Utility not work?
Network Utility is using ICMP rather than the default UDP protocol used by traceroute. You can use the -I flag to get the same behaviour on the command line:

traceroute -I 173.194.33.116


I don't know of any way to force Network Utility to use UDP.

One explanation for this could be that your firewall/router is configured to block ICMP packets.