Gold rose around 2 percent on Tuesday as the dollar fell and the previous session’s two-percent slide triggered physical buying interest among Asian investors, though prices remain under pressure from all-time highs in the U.S. equity markets.
Physical buying gathered pace in Europe and China on Tuesday, traders said, supporting prices after dollar strength had knocked them lower.
In addition, sales of gold and silver investment coins and bars have also surged after bullion slid to a 4-1/2-year low at $1,131.85 an ounce last week. The yellow metal is currently down about 3 percent this year.
Spot gold was up 1.7 percent at $1,169.95 an ounce by 2:41 p.m. EST (1941 GMT).
U.S. COMEX gold futures for December delivery settled up $3.20 an ounce at $1,163, with trading volume about 20 percent above its 30-day average, preliminary Reuters data shows.
A 0.4 percent drop in the dollar index helped underpin gold. The greenback retreated after rallying to a 7-year peak earlier.
Analysts said gold’s safe-haven appeal could decline after the Dow and S&P 500 on Monday extended their streak of record closes to a fourth day.
U.S. stocks hit an intraday record high at the open on Tuesday. They later eased 0.1 percent.