Investing.com - Gold futures were mildly higher in rangebound trade during U.S. morning hours on Tuesday, as a softer U.S. dollar supported prices while investors continued to speculate whether the Federal Reserve will keep its loose monetary policy in place for the indefinite future.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,575.65 a troy ounce during U.S. morning trade, up 0.2% on the day.
Comex gold prices held in a tight range between USD1,570.15 a troy ounce, the daily low and a session high of USD1,577.45 a troy ounce.
Gold prices were likely to find support at USD1,539.85 a troy ounce, the low from April 4 and an 11-month low and resistance at USD1,604.25, the high from April 2.
Gold's gains came as the U.S. dollar weakened against most of its major counterparts, making dollar-priced commodities less expensive to investors holding other currencies.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.45% to trade at 82.51.
Gold traders are now awaiting the release of the minutes of the Federal Reserve's March policy meeting on Wednesday for further hints on the future of its monetary policy.
The U.S. Department of Labor said last week that the economy added 88,000 jobs last month, the smallest increase since last June and far below forecasts for an increase of 200,000.
The data also showed that the unemployment rate ticked down to 7.6% from 7.7% in February, but the decline stemmed from more people dropping out of the labor force. The participation rate fell to 63.3%, the lowest level since 1979.
The dismal jobs report fuelled fears that the recovery in the labor market is losing momentum, easing recent jitters the Fed would start to withdraw its super easy monetary policy.
The central bank previously stated that monetary policy will remain accommodative "at least as long" as the jobless rate remains above 6.5%.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank could bring quantitative easing, one of the biggest boosts to gold's bull run, to an end this year.
Elsewhere on the Comex, silver for May delivery rose 0.85% to trade at USD27.36 a troy ounce, while copper for May delivery rallied 1.2% to trade at USD3.410 a pound.
Official data released earlier showed that consumer prices in China rose 2.1% in March from a year earlier, below expectations for a 2.5% increase and slowing sharply from a 3.2% rate of increase in February.
The slower-than-expected rise in inflation was likely to reduce pressure on policy makers in Beijing to tighten monetary policy as the country recovers from a slowdown.
China is the world's largest copper consumer, accounting for almost 40% of world consumption last year.
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