Gold prices Tuesday rose by more than 1 percent, to their highest levels in more than a month, supported by the decline in the dollar and Treasury yields, as investors bet that the latest US economic data provided the argument for the Federal Reserve (US Central Bank) to stop raising prices.
Spot gold rose 1.3 percent to $1979.19 an ounce by 1241 GMT, after hitting its highest level since late May, while US gold futures rose 1.5 percent to $1985.20.
The dollar index hit its lowest level in more than a year, making gold less expensive for holders of other currencies. US Treasury yields fell for the second day in a row.
Jim Wyckoff, chief market analyst at Kitco, said prices could fall to the $1,900 range if the central bank raises interest rates, although the data reinforces the idea that the central bank will ease monetary tightening by the end of this year, which would support gold.
As for other precious metals, silver rose in the spot market 0.9 percent to 25.07 dollars an ounce, while platinum increased 0.8 percent to 983.54 dollars and palladium jumped 2.9 percent to 1321.94 dollars.
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