Gold prices advanced on Tuesday, posting modest gains in Asia after falling in the previous session, as bargain hunters snapped up the yellow metal yet fears of a possible earlier-than-expected hike in U.S. interest rate will likely keep a lid on prices.
As of 11:38 GMT +3, spot gold traded at $1,318.83 up by 0.20 percent or 2.65 points after opening at $1,319.70. Gold so far hit session high at $1.320.15 and low at $1,316.64.
Strong U.S. jobs data last week have stocked speculations the Federal Reserve could increase rates sooner than expected amid signs of solid recovery.
Many investors are expected to jump to the sidelines to await the release of the Federal Reserve minutes. Markets will keep a close eye on the Feds June meeting minutes due to be released later on Wednesday.
Dollar was little changed on Tuesday, last seen trading at 80.31 after opening at 80.27, while hitting its highest at 80.32 and lowest at 80.23.
Among other precious metals:
- Silver added 0.33% to trade up at $ 21.05
- Platinum gained 0.27% to trade near 13 years high at $ 1,493.75
- Palladium fell 0.05% to $ 867.60 in Asia
Platinum and palladium group metals continued to benefit from concerns over the supply situation in South Africa, which recently witnessed a long strike that ended late last month but other smaller strikes have since broken out, burnishing supply fears.