Gold Gains In Asia As Weaker Dollar Trend Aids Buying Sentiment

Gold Gains In Asia As Weaker Dollar Trend Aids Buying Sentiment

Gold prices rose in Asia on Tuesday as the market shrugged off signs of tighter monetary policies ahead for the Bank of Japan and European Central Bank and took advantage of a weaker dollar trend to buy the greenback-denominated commodity.

Comex gold futures rose 0.47% to $1,341.20 a troy ounce after no floor trading on the exchange on Monday because of the Martin Luther King Day holiday. All electronic transactions will be booked with Tuesday's trades for settlement.

Overnight, gold prices remained supported at four-month highs on Monday, as demand for the U.S. dollar continued to broadly weaken.

The dollar shrugged off data on Friday showing that underlying U.S. consumer prices recorded their largest increase in 11 months in December, adding to expectations that inflation will accelerate this year.

Gold is sensitive to moves in the dollar. A weaker dollar makes gold less expensive for holders of foreign currency.