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Gold prices rose on Tuesday, supported by a weak dollar, as investors await more clarity on the Federal Reserve’s position regarding raising interest rates.
Spot gold rose 0.7 percent to $1,753.34 an ounce at 0651 GMT. US gold futures rose 0.7 percent to $1,752.60.
Bullion prices fell about 1 percent in the previous session after hawkish comments from US Federal Reserve officials. Council members James Bullard and John Williams said there was still a long way to go to fight inflation.
The dollar index fell 0.4 percent, making gold cheaper for buyers abroad. Gold is also sensitive to rising interest rates because it increases the opportunity cost of holding non-yielding assets.
Investors’ focus will now be squarely on Federal Reserve Chairman Jerome Powell, who is scheduled to speak at a Wednesday’s conference at the Brookings Institution.
Meanwhile, Chinese police have been deployed in large numbers in Beijing and Shanghai to prevent further protests against the COVID-19 restrictions.
In terms of other metals, silver rose in spot transactions 1.4 percent to 21.20 dollars, platinum increased 1.1 percent to 999.54 dollars, and palladium rose 1.5 percent to 1872.88 dollars.
