Gold futures rose in New York, rallying nearly 2 percent Tuesday as the dollar continued to decline against the euro, boosting investors demand for the precious metal. Silver also gained.

Gold for April delivery gained $16.30, or 1.8 percent, to end at $935 an ounce on the Comex division on the New York Mercantile Exchange. In the previous volatile trading session, gold futures fell $1.30 an ounce after dropping more than 8 percent last week.

In currencies, the dollar edged lower after economic data reported that U.S. consumer confidence expectations were at a 35-year low in March, while home prices in 20 major U.S. cities dived a record 10.7 percent in the past year.

The dollar index, which tracks the U.S. currency against a basket of other major currencies, fell 1 percent to 72.20. Weakness in the greenback typically benefits dollar-denominated commodities.

The Conference Board's consumer confidence index slumped to 64.5, a five-year low after data showed retailers dropped the most among 24 industry groups in the S&P 500. The board's measure of expectations for the next six months dropped to 47.9, the lowest since 1973.

Meanwhile, the latest Case-Shiller data compiled by Standard & Poor's showed U.S. home prices fell 10.7 percent in January from a year earlier. The gauge has fallen for 13 consecutive months.

Also on the Nymex, silver for May delivery gained 69 cents to end at $17.80 an ounce. April platinum surged $96.70, or 5 percent, to $1,985.90 an ounce while June palladium rose $26.75, or 6 percent, to $463.15 an ounce.

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