Gold settles over 1.5% higher as dollar weakens

Gold bars

Gold prices rose more than 1.5% at Tuesday’s close, supported by a weaker dollar and persistent uncertainty surrounding the US trade war and ceasefire negotiations in Ukraine.

June gold futures gained 1.58%, or $51.1, to settle at $3,284.6 an ounce.

The rally came as the US currency lost ground, with the dollar index, which measures the greenback against a basket of six major peers, falling 0.31% to 100 as of 9:41 p.m. Mecca time.

"There's still a level of uncertainty out in the market. Most notably, the Moody's downgrade, weakening dollar have supported the precious metals complex overall," David Meger, director of metals trading at High Ridge Futures, told Reuters.

Investors are closely watching three-way talks between the United States, Russia, and Ukraine aimed at brokering a ceasefire between Moscow and Kyiv, a potential step toward ending the conflict that has gripped Eastern Europe for over three years.