LONDON: Gold rose on Tuesday as a retreat in the dollar prompted buying ahead of a speech by Federal Reserve chair Janet Yellen, which will be closely watched for clues on US monetary policy.
Gold is highly sensitive to US monetary policy, as rising interest rates lift the opportunity cost of holding non-yielding bullion, while boosting the dollar.
Spot gold was up 0.6pc at $1,227.41 an ounce by 1333 GMT, after touching a one-month low of $1,208.15 an ounce on Monday. US gold futures for April delivery were up $7.50 an ounce at $1,227.60.
Among other precious metals, silver was up 0.3pc at $15.23 an ounce, platinum was up 1.2pc at $955.10 an ounce and palladium was down 0.4pc at $565 an ounce.