Gold prices headed towards six month high level prices on Tuesday, on weaker dollar and on heightened hopes that Fed will announce new monetary policy easing measures, after the credit rating agency Moody's pointed out that United States might lose its 'triple-A' debt rating if next year's budget negotiations do not produce policies that decrease debt. The yellow metal also soared up as investors anticipated inflation after Central Bank's supporting measure, hence increased investments on the safe-haven appeal of the bullion. The precious metal however pared some gains as traders held back from making big moves ahead of coming central-bank news from the U.S. and Europe.
Gold futures for December delivery inched up by $3.10 or 0.2 % at $1,734.90 an ounce, on the Comex division of the New York Mercantile Exchange. While, spot gold also climbed by 0.3% to $33.39 an ounce.