Gold futures settled higher on Tuesday as the dollar shed ground and bond yields dropped with investors looking ahead to U.S. inflation data, due later in the week.
The dollar index dropped to 109.35 this afternoon and despite recovering to 109.57, is down as much as 0.5% from the previous close.
Gold futures for December ended higher by $35.50 or about 2.1% at $1,716.00 an ounce.
Silver futures for December ended up $0.583 or about 2.8% at $21.502 an ounce, while Silver futures for December settled at $3.6285 per pound, gaining $0.0790.
Investors awaited the results of the U.S. midterm elections. Republicans are expected to take control of the House and possibly the Senate.
Investors also look ahead to U.S. consumer price inflation, as the data could have a significant impact on the outlook for interest rates.
Economists expect a modest slowdown in the annual rate of consumer price growth, which could add to optimism about a slowdown in the pace of rate hikes.
