Investing.com -
Investing.com - Gold prices rose on Tuesday as expectations that the minutes from the Federal Reserve's March policy meeting to be released Wednesday will reveal dovish language and a less-than-stellar take on U.S. recovery.
On the Comex division of the New York Mercantile Exchange, gold for June delivery was up 0.84% at $1,309.20, off a session high of $1,314.70 and up from a low of $1,296.80
The June contract settled down 0.40% at $1,298.30 on Monday.
Gold futures were likely to find support at $1,295.90 a troy ounce, Monday's low, and resistance at $1,343.00, the high from March 21.
The dollar weakened and gold rose as investors avoided the U.S. currency ahead of Wednesday's minutes of the Fed's March meeting, which should provide fresh insight as to the direction of monetary policy.
Last week's U.S. payrolls report came in slightly below expectations, which spooked investors, as Fed Chair Janet Yellen has said slack labor markets will call for accommodative policies to stay in place for some time, which gave gold a boost as did a rising euro.
Demand for the euro remained firm after European Central Bank officials on Monday stressed that while fresh easing measures may be needed to steer the euro zone away from deflationary pressures, implementation of such tools is not imminent.
Last week the ECB left the door open to further stimulus measures, saying that unconventional monetary policy instruments may be necessary to avert the risk of ongoing low inflation in the euro zone.
A falling dollar and a rising euro often serve as a recipe for firmer gold prices .
Elsewhere, emerging-market currencies rose across the board on sentiments that even though the Federal Reserve will continue to unwind its bond-purchasing program this year, policy will remain loose for some time to come and make higher-yielding currencies more attractive.
Escalating tensions in Ukraine chipped away at the dollar and boosted gold as well.
Gold firmed after pro-Russian activists in Ukraine's industrial center of Donetsk declared their independence from Kiev, a move Ukrainian leaders described as part of a Russian-orchestrated plan to justify an invasion.
U.S. Secretary of State John Kerry said earlier that Russian agents were encouraging unrest in eastern Ukraine and said Moscow was preparing military action in the region.
Reports that Iraq's central bank is prepared to increase its gold holdings also added to the day's gains.
Elsewhere on the Comex, silver for May delivery was up 0.51% and trading $20.008 a troy ounce, while copper for May delivery was up 0.34% and trading at $3.050 a pound.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.