Investing.com - Gold prices added to overnight gains during North America's session on Tuesday, as market players looked ahead to more U.S. economic data for clues on the likelihood of a December rate hike.
Gold for December delivery on the Comex division of the New York Mercantile Exchange advanced $7.55, or 0.61%, to $1,271.35 a troy ounce by 8:45AM ET (12:45GMT). A day earlier, the yellow metal lost $4.00, or 0.32%.
Also on the Comex, silver futures for December delivery jumped 16.3 cents, or 0.93%, to $17.76 a troy ounce during morning hours in New York.
U.S. consumer confidence data will be in the spotlight on Tuesday, as investors attempt to gauge if the world's largest economy is strong enough to withstand an increase in borrowing costs before the end of the year.
The Conference Board will publish October consumer confidence figures at 10:00AM ET (14:00GMT). Analysts expect the index to tick down to 101.0 from 104.1 in September. The Richmond Fed survey is also due Tuesday morning.
Meanwhile, Atlanta Fed President Dennis Lockhart is scheduled to speak at 1:20PM ET (17:20GMT) on lending and investing in community development. Fed speakers will then be in a quiet period ahead of the central bank's meeting next week.
A recent string of upbeat U.S. economic data combined with hawkish remarks from key Fed officials heightened expectations for higher interest rates in the coming months.
Traders are currently pricing in around a 74% chance of a rate hike at the Fed's December meeting, according to Investing.com's Fed Rate Monitor Tool.
The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced.
The U.S. dollar index, which measures the greenback's value against a basket of six major currencies, was at 98.80 early Tuesday, after touching a session peak of 98.85, the most since February 3.
A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Elsewhere in metals trading, copper futures rallied 4.6 cents, or 2.2%, to $2.139 a pound, after positive manufacturing data from the U.S. and the euro zone on Monday added to optimism over the health of the global economy.
Copper is sensitive to the economic growth outlook because of its widespread uses across industries.