Gold prices rose to a seven-week high on Tuesday, after U.S. economic data showed lukewarm inflation and nearly flat consumer spending, raising the question of whether the Federal Reserve will raise interest rates in the coming months.
Spot gold was up 0.19 percent to $1,271.51. It rose 2.2 percent last month, its biggest monthly gain since February.
U.S. gold futures for December settled at $1,279.40 per ounce.
"The continuation of weakness in the data is having people question the Fed and if inflation will be able to pick up longer term, and that's what's really driving (gold)," said Ryan McKay, associate commodities strategist for TD Securities.
"People are starting to question (a U.S. rate hike) more and we've seen a rebound from the lows of $1,200, and I think that's due to people becoming less certain that this is going to happen."