Gold prices hit one-week peak

Gold prices climbed for a second straight session to hit a one-week peak on Tuesday as the US dollar pulled back from recent highs, while investors awaited comments from Federal Reserve officials for clarity on its interest rate cut policy, reports Reuters.

Spot gold rose 1 per cent to $2,637.10 per ounce by 1308 GMT, the highest since Nov. 11. Prices gained 2 per cent on Monday, recovering from a two-month low hit on Thursday. US gold futures added 1 per cent to $2,641.10.

"The selling has run out of steam and that's attracting those potential buyers sitting on the fence waiting for the market to stabilize to get back in," said Ole Hansen, head of commodity strategy at Saxo Bank.

"The dollar has stopped rising and that probably was the necessary trigger."

The US dollar experienced a pullback as investors engaged in profit-taking following last week's stellar rally that saw it scale a one-year high. The decline in the dollar's value makes gold less expensive for buyers holding other currencies. Multiple Fed officials are scheduled to speak this week, which could offer further insights into the rate cut paths.

Among other metals, spot silver added 0.7 per cent to $31.38, hitting a one-week high earlier in the session. Platinum ticked 0.2 per cent lower to $965.52. Palladium rose 0.6 per cent to $1,010.39 after rising more than 5 per cent on Monday.