Gold rose in U.S. electronic trading early Tuesday, following similar jumps in European and Asian trading from stronger demand for physical gold and uncertainty about the Federal Reserve.

Traders attributed the increase to strong physical demand for gold and uncertainty over what the release of August minutes from the U.S. central bank's policy meeting will show.

The Federal Reserve is divided over whether to print more money to stimulate the nation's lackluster economic growth.

For now, the Fed has managed to buy itself some time to gather more data and mull over what to do next. This is positive for gold, in our view, UBS strategist Edel Tully said in a research note.

The market is likely to be volatile over the next few weeks, until there is clearer guidance from the Fed, which will likely come after the two-day FOMC meeting in September. That the scheduled meeting has been extended for an extra day suggests that deliberations on potential policy actions will be comprehensive.

In addition to concern over what the Fed minutes will show, investors used gold's recent decline -- 1 percent last week-- to buy into what they see as a long-term growth story.

Given the ascendancy we've had, (price falls) shouldn't be a surprise and I suppose any dips, or sell-offs of that sort are manna from heaven for people who haven't yet bought into the story, Credit Agricole analyst Robin Bhar told Reuters.

You'd have to say 'buy the dips' because with all the uncertainty all still very present and far from being resolved, despite better data, you still want gold as an insurance.

Spot gold rose $25.30 to $1,830.36 an ounce, while gold for December delivery on the CME Comex division of the New York Mercantile Exchange climbed $24.50 to $1,816.10.

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