Gold futures settled higher on Tuesday, rebounding from recent weakness, as the dollar turned a bit weak against its rival currencies, and the yield on 10-year Treasury note dropped slightly.
Gold also found support due to rising concerns about inflation and slowing growth.
Investors looked ahead to the monetary policy announcement by the European Central Bank (ECB) on Thursday, with the central bank expected to confirm an end to bond buying.
The dollar index dropped to 102.31 in the New York session, after having climbed to 102.84 during the European session.
Gold futures for August ended higher by $8.70 or about 0.5% at $1,852.10 an ounce.
Silver futures for July ended up by $0.086 at $22.178 an ounce, while Copper futures for July settled at $4.4355 per pound, gaining $0.0005.
Data showed earlier in the day that German factory orders fell for a third month in a row in April, driven by weakened demand and heightened uncertainty due to the Russian-Ukraine conflict.
Orders fell by 2.7% month-on-month in seasonally adjusted terms, after an upwardly revised decline of 4.2% in March.
In U.S. economic news, a report from the Commerce Department showed the U.S. trade deficit narrowed significantly in the month of April.
The report said the trade deficit narrowed to $87.1 billion in April from $107.7 billion in March. Economists had expected the deficit to shrink to $89.5 billion from the $109.8 billion originally reported for the previous month.
