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.

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.

Courtesy: www.ibtimes.com

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