Investing.com - Gold prices remained supported on Tuesday, as sentiment on the U.S. dollar remained vulnerable and fresh geopolitical tensions boosted safe-haven demand.
Comex gold futures were up 0.38% at $1,314.20 a troy ounce by 08:20 a.m. ET (12:20 GMT), their highest since September.
The U.S. dollar weakened in 2017 as the global economy gained momentum fueling expectations for tighter monetary policy in other countries, which would lessen the divergence between the Federal Reserve and other central banks.
Market watchers were looking ahead to Wednesday’s minutes of the Fed’s December meeting for further hints on the future path of monetary policy, as well as the U.S. nonfarm payrolls report due on Friday.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.46% at 91.57, the lowest since September 22.
Gold is sensitive to moves in the dollar. A weaker dollar makes gold less expensive for holders of foreign currency.
Meanwhile, demand for the precious metal was also boosted by four days of protests in Iran, marking the biggest challenge to the country's clerical leadership since 2009.
Elsewhere on the Comex, silver futures were little changed at $17.14 a troy ounce.