Gold prices at 3-1/2-month high on weaker dollar, inflation anxiety

Shafaq News / Gold prices extended gains on Tuesday, hitting their highest level in more than three-and-a-half months, as a weaker U.S. dollar and growing inflationary pressure bolstered the metal's appeal as an inflation hedge, Reuters reported.

Spot gold was up 0.1% at $1,868.27 per ounce by 0314 GMT, after hitting its highest since Jan. 29 at $1,873.41 earlier in the day. U.S. gold futures were steady at $1,868.30.

The dollar index slipped 0.1% to hit a one-week low against its rivals, making gold less expensive for other currency holders.

Holdings of SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, rose 0.7% to 1,035.93 tonnes on Monday, their highest since late-March. [GOL/ETF]

In the wake of rising prices in the United States, minutes of the Federal Reserve's last policy meeting due on Wednesday are expected to provide further clarity on the central bank's monetary policy outlook and policymakers' view on inflation.

Elsewhere, silver jumped 0.8% to $28.40 per ounce, after hitting its highest since Feb. 2 earlier in the session.

Palladium gained 0.4% to $2,911.63 and platinum climbed 0.1% to $1,241.