<p>Gold prices rose on Tuesday after sharp sell-offs in the last two sessions, as demand for the safe-haven metal was spurred by a pause in the dollar's rally, although fears of a sooner-than-expected US interest rate hike capped bullion's gains.</p>.<p>Spot gold was up 0.4 per cent at $1,735.58 per ounce by 05:23 GMT. US gold futures rose 0.6 per cent to $1,736.</p>.<p>"We are seeing some short-covering taking place right now in the market after correction post-US payrolls data," said Kunal Shah of commodities trader Nirmal Bang Commodities in Mumbai.</p>.<p><strong>Read more: <a href="http://Sensex surges over 250 points in early trade, Nifty tops 16,300 Read more at: https://www.deccanherald.com/business/business-news/sensex-surges-over-250-points-in-early-trade-nifty-tops-16300-1018141.html" target="_blank">Sensex surges over 250 points in early trade, Nifty tops 16,300 </a></strong></p>.<p>"We are also seeing some bargain buying. But gains are not going to be sustained, and in the near-term gold is expected to remain under pressure because of the tapering talks in the United States."</p>.<p>Gold prices fell more than 4 per cent in the last two sessions after better-than-expected US jobs figures bolstered expectations for an early tapering of the Federal Reserve's economic support measures.</p>.<p>Two Fed officials said the US economy is growing rapidly and while the labour market still has room for improvement, inflation is already at a level that could satisfy one leg of a key test for the beginning of interest rate hikes.</p>.<p>Investors now shift their focus to US consumer inflation data due on Wednesday.</p>.<p>Though gold is viewed as a hedge against higher inflation, a Fed rate hike would dull its appeal as it increases the opportunity cost of holding the non-yielding metal.</p>.<p>Offering some respite to gold, the dollar index was broadly flat after solid gains in the last two sessions. A stronger dollar makes gold more expensive to holders of other currencies.</p>.<p>Spot gold may revisit its Monday low of $1,684.37 per ounce, driven by a wave C, according to <em>Reuters</em> technical analyst Wang Tao.</p>.<p>Elsewhere, silver gained 0.8 per cent to $23.62 per ounce after falling to an eight-month low on Monday.</p>.<p>Platinum gained 1 per cent to $989.65 and palladium rose 0.7 per cent to $2,618.71.</p>
<p>Gold prices rose on Tuesday after sharp sell-offs in the last two sessions, as demand for the safe-haven metal was spurred by a pause in the dollar's rally, although fears of a sooner-than-expected US interest rate hike capped bullion's gains.</p>.<p>Spot gold was up 0.4 per cent at $1,735.58 per ounce by 05:23 GMT. US gold futures rose 0.6 per cent to $1,736.</p>.<p>"We are seeing some short-covering taking place right now in the market after correction post-US payrolls data," said Kunal Shah of commodities trader Nirmal Bang Commodities in Mumbai.</p>.<p><strong>Read more: <a href="http://Sensex surges over 250 points in early trade, Nifty tops 16,300 Read more at: https://www.deccanherald.com/business/business-news/sensex-surges-over-250-points-in-early-trade-nifty-tops-16300-1018141.html" target="_blank">Sensex surges over 250 points in early trade, Nifty tops 16,300 </a></strong></p>.<p>"We are also seeing some bargain buying. But gains are not going to be sustained, and in the near-term gold is expected to remain under pressure because of the tapering talks in the United States."</p>.<p>Gold prices fell more than 4 per cent in the last two sessions after better-than-expected US jobs figures bolstered expectations for an early tapering of the Federal Reserve's economic support measures.</p>.<p>Two Fed officials said the US economy is growing rapidly and while the labour market still has room for improvement, inflation is already at a level that could satisfy one leg of a key test for the beginning of interest rate hikes.</p>.<p>Investors now shift their focus to US consumer inflation data due on Wednesday.</p>.<p>Though gold is viewed as a hedge against higher inflation, a Fed rate hike would dull its appeal as it increases the opportunity cost of holding the non-yielding metal.</p>.<p>Offering some respite to gold, the dollar index was broadly flat after solid gains in the last two sessions. A stronger dollar makes gold more expensive to holders of other currencies.</p>.<p>Spot gold may revisit its Monday low of $1,684.37 per ounce, driven by a wave C, according to <em>Reuters</em> technical analyst Wang Tao.</p>.<p>Elsewhere, silver gained 0.8 per cent to $23.62 per ounce after falling to an eight-month low on Monday.</p>.<p>Platinum gained 1 per cent to $989.65 and palladium rose 0.7 per cent to $2,618.71.</p>