ALBAWABA - Gold prices rose on Tuesday as the U.S. dollar weakened, while investors awaited further indications on the path the Federal Reserve will take regarding interest rates.
The data reinforced expectations that the Federal Reserve will raise interest rates at its May meeting.
Gold is considered a hedge tool in times of inflation and economic uncertainty, but high interest rates undermine the attractiveness of non-yielding bullion. Price movements
Spot gold rose 0.2 percent to $2,001.09 an ounce by 0457 GMT Tuesday. U.S. gold futures also increased 0.2 percent to $2,011.10.
The dollar index fell 0.1 percent, making dollar-priced bullion cheaper for buyers outside the United States.
Gold prices fell to their lowest level in two weeks on Monday after data showed manufacturing activity in New York state expanded for the first time in five months.
As for other precious metals, silver fell 0.4 percent to $25.02 an ounce in spot trading, platinum dropped 0.1 percent to $1,046.55, and palladium fell 0.2 percent to $1,562.26.
