Gold bounced up slightly on Tuesday, as a weaker U.S. dollar gave bullion a boost after the previous day's sharp decline and as investors awaited the minutes, due on Wednesday, of the Federal Reserve meeting held in November. Gold benefited from some safe-haven buying from investors leery of a political crisis in Germany, Europe's largest economy.
Spot gold was up 0.3 percent at $1,280.63 per ounce. The metal fell about 1.4 percent on Monday, its biggest daily percentage drop since Sept. 11.
U.S. gold futures for December delivery settled up 0.5 percent at $1,281.70 per ounce.
Silver climbed 0.2 percent to $16.94 an ounce. On Monday, silver fell 2.3 percent, its biggest one-day percentage fall since Sept. 26.
"Given the fact that gold and silver prices fell so dramatically yesterday, we have seen a little bargain hunting coming into the market today," said David Meger, director of metals trading at High Ridge Futures in Chicago.