Gold prices rose from their lowest levels in nearly two weeks on Tuesday, as dollar and Treasury yields declined, and traders assessed signs of escalation in the Middle East.

The dollar index fell as the yield on the benchmark 10-year Treasury bond fell to 4.1250%, making non-yielding bullion more attractive to holders of other currencies.

The United States continued its campaign against the Iran-backed Houthis in Yemen, while hopes were pinned that US Secretary of State Anthony Blinken's visit to the Middle East would lead to a truce in Gaza.

Gold, considered a safe investment, tends to rise during times of political uncertainty.

With the Fed backing away from interest rate cuts and strong economic data in the US, there is nothing left to support gold except tension in the Middle East, said Ajay Kedia, director of Kedia Commodities in Mumbai.

UBS expects gold prices to rise to $2,200 an ounce by the end of this year, with the Federal Reserve starting to cut interest rates during its monetary policy meeting scheduled for May.

Two Federal Reserve officials said that the US central bank does not need to be overly concerned about the recent higher-than-expected economic growth and employment numbers, and it could take some time before it decides to cut interest rates, reflecting Powell's wisdom in determining when to cut. interest rates.

Investors are awaiting comments from at least eight Fed members this week for more clues about the timing of interest rate cuts.

Gold at settlement yesterday

Gold futures prices fell at settlement on Monday, with the dollar index and US debt yields rising, following hawkish statements from Federal Reserve Chairman Jerome Powell in which he questioned cutting interest rates during the March meeting.

Upon settlement, gold futures prices for April delivery fell by 0.55%, or $10.8, at $2,042.9 per ounce, after touching $2,030.80.

Gold and dollar now

Gold futures settled at $2,042 an ounce.

While spot gold contracts rose by about 0.1% to $2,027 per ounce.

On the other hand, the dollar index fell by 0.13% to 104.187 points.

other metals

Spot silver rose 0.3 percent to $22.42 per ounce, while palladium jumped 1.4 percent to $961.38 and platinum rose 0.3 percent to $898.84.