Investing.com - Gold futures were higher for the first time in five days on Tuesday, as speculation the Federal Reserve will maintain its bond-buying program boosted the appeal of the precious metal.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would pump more money into the financial system.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,581.10 a troy ounce during European morning trade, up 0.55% on the day.
Prices rose by as much as 0.7% earlier in the day to hit a session high of USD1,583.20 a troy ounce.
Gold prices were likely to find support at USD1,564.20 a troy ounce, the low from March 1 and near-term resistance at USD1,602.20, the high from February 28.
Federal Reserve Vice Chair Janet Yellen said on Monday the central bank's aggressive monetary stimulus was warranted given how far the economy was operating below its full potential.
Gold prices plunged to a seven-month low earlier in February after the minutes of the Fed's January meeting showed that policymakers discussed the slowing or stopping of USD85 billion in monthly bond purchases even before the job market improves.
Speculation the Fed would keep its loose monetary policy weighed on the U.S. dollar. The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.3% to hit 82.03.
Gold prices often move inversely to the U.S. dollar, as gold becomes less expensive for buyers using other currencies.
Other central banks were also in focus, with the European Central Bank, the Bank of England and the Bank of Japan all holding policy meetings later in the week.
Friday's data on U.S. nonfarm payrolls will also be closely watched as investors attempt to gauge the strength of the economic recovery.
Meanwhile, investors continued to eye political developments in Italy, amid the growing likelihood of fresh elections as hopes for a coalition government faded.
Elsewhere on the Comex, silver for May delivery rallied 1.5% to trade at USD28.94 a troy ounce, while copper for May delivery jumped 1.2% to trade at USD3.543 a pound.
Investing.com - Investing.com offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.
Read more News on Investing.com or Follow us on Twitter at @ Newsinvesting
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.