Gold prices jumped Tuesday as the dollar eased against major currencies amid economic and political news, and as equities continued to get stuck in a tight trading range.
Gold for December delivery gained $13.60, or 1.2%, to settle at $1,197.10 an ounce. December silver tacked on 12 cents, or 0.7%, to $16.17 an ounce.
The dollars fall against major currencies resulted in gold prices moving higher. The dollar underpins gold contract trading. The U.S. currency fell against the yen after Japanese Prime Minister Shinzo Abe said Tuesday the government will delay, by 18 months, a planned increase in sales tax. He will dissolve the lower house of parliament on Nov. Friday and has called for a snap election to be held in December.
Meanwhile, the dollar fell against the euro after a measure of German economic confidence improved for the first time in nearly a year, sharply beating expectations.
In other metals action, January platinum added $3.30 to $1,204.60 an ounce, while December palladium shed $8, or 1%, to $776.70 an ounce.
High-grade copper for December delivery lost four cents to $3 a pound.