Gold rose above $1,590 an ounce on Tuesday, gaining nearly one percent following comments by an European Central Bank official that euro zone inflation pressures are abating, which was viewed as an indication of continued monetary easing.
(Read More: CNBC Explains Inflation)
Accommodative monetary policies favor gold as low interest rates encourage investors to put money into the non-interest-bearing assets.
The metal started the day on a firmer tone, supported by some physical buying in Asia, but a stronger dollar and continued redemptions in gold-backed exchange-traded funds kept prices in check.
(Read More: CNBC Explains Exchange-Traded Funds)
Spot gold rose more than a percent to $1,596 an ounce on Tuesday morning, breaking above the $1,560 and $1,585 range in which had been confined since the start of March.
U.S. gold for April delivery were up one percent at $1,596.
(Read More: Gold Jumps, Fueled by ECB Bond Buying Hopes)
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