Gold rose on Tuesday, rebounding from a three-and-a-half-month low hit in the previous session, but remained on track for its biggest monthly decline since November on broad strength in the dollar and growing expectations of an imminent U.S. rate hike.
Spot gold was up 0.99 percent at $1,216.81 an ounce, having fallen by as much as 1 percent on Monday to $1,199.60. That was its lowest since Feb. 17, pressured by strength in the dollar and a rise in global share prices, increasing investors' risk appetite and leaving gold set for a 6.2 percent decline in May.
U.S. gold futures settled up 80 cents at $1,217.50.
"If you get a pick-up in growth expectations in the U.S. and aggressive rate hikes from the Fed, then you could revisit the low of the year (at $1,127.80), but I see that as an unlikely scenario," ABN Amro analyst Georgette Boele said, adding the next support level is the 200-day moving average of $1,163.