Gold rises with the decline of the dollar

Gold prices rose on Tuesday as the dollar weakened, as investors await more clues about the Federal Reserve’s interest rate path.

Spot gold rose 0.2 percent to $2,001.09 an ounce by 0457 GMT. And US gold futures rose 0.2 percent to 2011.10 dollars.

The dollar index fell 0.1%, making bullion priced in the greenback cheaper for buyers abroad.

Gold prices fell to a two-week low on Monday after data showed manufacturing activity in New York state increased for the first time in five months.

The data reinforced expectations that the Federal Reserve will raise interest rates at its meeting in May.

Gold is considered a hedge in times of high inflation and economic uncertainty, but high interest rates undermine the attractiveness of non-yielding bullion.

As for other precious metals, spot silver fell 0.4 percent to $25.02 an ounce, platinum fell 0.1 percent to $1,046.55, and palladium fell 0.2 percent to $1,562.26.