Investing.com - Gold prices pushed higher during Europe's session on Tuesday, but gains were limited as the U.S. dollar rose to the highest level since February amid heightened expectations that the Federal Reserve will hike interest rates before the end of this year.
Gold for December delivery on the Comex division of the New York Mercantile Exchange tacked on $4.15, or 0.33%, to $1,267.85 a troy ounce by 2:55AM ET (06:55GMT). A day earlier, the yellow metal lost $4.00, or 0.32%.
A recent string of upbeat U.S. economic data combined with hawkish remarks from key Fed officials all but cemented expectations for higher interest rates in the coming months.
Traders are currently pricing in around a 74% chance of a rate hike at the Fed's December meeting, according to Investing.com's Fed Rate Monitor Tool.
The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced.
The U.S. dollar index, which measures the greenback's value against a basket of six major currencies, was at 98.75 early Tuesday, within sight of the prior session's more than nine-month high of 98.83.
A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Also on the Comex, silver futures for December delivery tacked on 4.6 cents, or 0.26%, to $17.65 a troy ounce during morning hours in London, while copper futures added 3.4 cents, or 1.62%, to $2.127 a pound.