Gold prices rose during these trading moments, today, Tuesday, interacting with the decline in the dollar index.
Meanwhile, investors are awaiting another widely expected US interest rate hike from the US Federal Reserve.
Gold and the dollar now
Gold futures rose 0.12% to $1,964.6 an ounce.
While spot contracts rose by 0.43% to 1963.3 dollars an ounce.
On the other hand, the dollar index fell by 0.1% to 100,977 points.
gold when settling yesterday
Gold prices declined when settling transactions, yesterday, Monday, with anticipation of interest decisions from the largest central banks this week.
Upon settlement, gold futures fell by 0.2%, or the equivalent of $4.4, to reach $1962.2 an ounce, after touching $1969.8 during trading.
Notable upcoming movements..and the movement range of gold today
The dollar index has fallen from its peak in almost two weeks, which is supporting gold, as a weaker dollar makes bullion cheaper for buyers who trade in other currencies.
Matt Simpson, Senior Market Analyst at City Index said: After a four-day decline, I suspect that gold will hold its position above $1950 and strive for a technical rally towards $1960-$1965 intraday trading today. Adding that we will see significant price movements after the conclusion of the FOMC meeting.
Market focus will be on what Federal Reserve Chairman Jerome Powell on Wednesday and European Central Bank President Christine Lagarde say on Thursday about monetary policy outlook for their September meetings.
Gold is very sensitive to rising interest rates because it increases the opportunity cost of holding bullion that yields no interest.
Important data and betting gold
Data on Monday showed business activity in the United States and Europe slowed in July, suggesting that both central banks may be nearing the end of their interest rate hike cycles.
The yellow metal increased during yesterday's trading, after the release of the Standard & Poor's Global survey for the month of July, which showed that the world's largest economies were affected by the continuous monetary tightening from central banks, and renewed recession fears.
The composite PMI in the United States fell to its lowest level in five months, and its counterpart in the eurozone fell to its lowest level in eight months.
Traders are of the opinion that the Fed will maintain interest rates in a range of 5.25%-5.5% through 2024, according to the Fed's Interest Tracking Tool on Investing Saudi Arabia.
According to the same tool, the markets are currently having a near 99% probability of a 25 basis point rate hike at the Fed's meeting on Tuesday and Wednesday this week.
While market expectations range between 65% and 81% to stabilize the monetary policy range, at 5.25% and 5.50% during the remaining three meetings this year of the US Central Bank.
Simpson said: The best bet for gold now is to reach record levels when the Federal Reserve announces the end of the monetary tightening cycle with no recession in sight.
