Gold rallied on Tuesday as a strong performance from centrist presidential candidate Emmanuel Macron in a French election debate and fading expectations for near term U.S. interest rate hikes pushed the dollar to a six-week low versus the euro.
Weakness in the U.S. currency helped pull the metal off early lows hit after a sharp drop in Asian trading hours, as a failure to overcome chart resistance prompted speculative selling following a four-day rally.
Spot gold was up 0.84 percent at $1,243.50 an ounce. U.S. gold futures for April delivery settled up $12.50 at $1,246.50.
"We're back down below 100 on the dollar index, and that is tied in with the less aggressive rate hike expectations that we heard last week from the Fed," Mistubishi analyst Jonathan Butler said.