Gold for April delivery rose to as high as $ 1287.5 an ounce so far in the session today. Yesterday, it advanced $11.80, or 0.9%, to settle at $1,274.70 an ounce on the Comex division of the New York Mercantile Exchange.
Weakness in the US dollar also supported the yellow metal. The dollar fell further on Tuesday against other major currencies, as global investors awaited Janet Yellen’s first testimony as new Federal Reserve chair later in the day.
The ICE dollar index, a measure of the greenback’s strength against six other currencies, dropped to 80.55 from 80.63 late Monday. Against the Japanese yen, the dollar fell to ¥102.17 from ¥102.21 late Monday. Likewise, the euro rose to $1.3667 from $1.3645, and the British pound advanced to $1.6422 from $1.6408 late Monday.
The yellow metal also got boost after china gold demand showed solid rise. China’s 2013 gold consumption topped 1,000 tons for the first time, climbing 41% from a year earlier to reach roughly 1.8 tons. Separately, the association reported that China’s gold output rose 6.2% in 2013 to a record 428.16 tons.
MCX April gold futures are trading above Rs 29100 up nearly Rs 200 per 10 grams. It may face resistance near Rs 29200 levels today.
Yellen’s testimony before the House of Representatives is scheduled to begin at 10 a.m. U.S. Eastern time Tuesday, but her prepared remarks are due to be released at 8:30 a.m. Eastern.