Gold prices hit a one-week high on Tuesday, boosted by a lower dollar after U.S. economic data persuaded investors to reassess the idea of an imminent Fed rate hike and rising security concerns following the bomb blast in Russia.
Gold broke above its 200-day level of 1,261.5 on an intraday basis for the first time since February 27.
The U.S. Institute for Supply Management (ISM) said its index of national factory activity fell to 57.2 in March from 57.7 in February, which was the highest since August 2014, while automakers reported a 1.6 percent fall in U.S. sales last month.
"The dollar's gains could be coming to an end. It has been rising and that's a headwind for the U.S. economy," said Marex Spectron analyst Guy Wolf.
"People are not so worried about inflation, they don't think the Fed is behind the curve. People are not so optimistic about (U.S. President Donald) Trump being able to deliver quickly on his election promises about taxes and infrastructure."
A falling U.S. currency makes dollar-denominated metals cheaper for holders of other currencies.