Gold rose nearly one percent on Tuesday after disappointing U.S. data hit the dollar and dampened expectations that the Federal Reserve will hint at this week's policy meeting at an interest rate hike in coming months.
Spot gold climbed to a three-week high of $1,212.80 percent after the data showed U.S. consumer confidence dropped in April to its lowest level since December.
It was up 0.8 percent at $1,210.88 an ounce, after a 2 percent rise on Monday, while U.S. gold futures for June delivery rose $7.30 an ounce to $1,210.50.
"Market participants are focusing on the Fed meeting on hopes of some hints on when the Fed will raise interest rates ... However, i don't think we will get any surprising news tomorrow," Commerzbank analyst Daniel Briesemann said.
"Traders will continue to look at the data, which has been quite weak lately."
The dollar fell 0.5 percent against a basket of leading currencies.