Gold up despite rebound in US dollar

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Tuesday despite a rebound in the U.S. dollar and U.S. equities.

The most active gold contract for June delivery rose 2.9 U.S. dollars, or 0.23 percent, to settle at 1,260.90 dollars per ounce.

U.S. Federal Reserve Chair Janet Yellen indicated that the central bank will be patient in raising rates, putting pressure on the U.S. dollar and U.S. equities this week.

A weak dollar led to a rise in gold. Traders still believed that the short-term outlook for the precious metal is strong.

Meanwhile, the U.S. Dollar Index, a measure of the dollar against a basket of major currencies, rose by 0.09 to 94.09 as of 17:25 GMT, adding some pressure to gold which typically move in opposite directions with dollar.

The precious metal came under further pressure as the U.S. Dow Jones Industrial Average rose by 147 points, or 0.84 percent as of 17:30 GMT. Analysts note that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains.

With no major economic reports on Tuesday, traders are cautiously monitoring the U.S. dollar's activity for potential influence on gold, and also awaited a bunch of economic data due to be released later this week.

The retail sales and producer price index will be released on Wednesday, the consumer price index and weekly jobless claims on Thursday, and the industrial production report on Friday.

Silver for May delivery rose 24.6 cents, or 1.54 percent, to close at 16.222 dollars per ounce. Platinum for July delivery gained 8.9 dollars, or 0.90 percent, to close at 999.70 dollars per ounce.