Gold prices climbed higher on Tuesday, as the dollar languished in the red for most part of the session.
Gold prices had drifted lower in the previous session in the wake of hawkish comments from St. Louis Fed President James Bullard.
Fed officials Bullard and John Williams reiterated their hawkish stance on further rate hikes.
Also, optimism surrounding China’s reopening offset rate-hike fears and weighed on the greenback.
China reported a slight dip in new COVID-19 infections and also stepped-up support for the country’s property sector.
However, the dollar’s recovery from lower levels capped gold’s uptick. The dollar index, which dropped to 106.06 in the Asian session, climbed to 106.80 later in the day, gaining a marginal 0.1%.
Gold futures for February ended higher by $8.40 or about 0.5% at $1,763.70 an ounce.
Silver futures for March ended up $0.311 at $21.436 an ounce, while Copper futures for March settled at $3.6395 per pound, up $0.0240 from the previous close.
In U.S. economic news, the Conference Board released a report on Tuesday showing a modest decrease in U.S. consumer confidence in the month of November.
The Conference Board said its consumer confidence index dipped to 100.2 in November from a revised 102.2 in October. Economists had expected the index to slip to 100.0 from the 102.5 originally reported for the previous month.
The modest decrease by the headline index came as the present situation index edged down to 137.4 in November from 138.7 in October.