Gold climbs to more than 2-week high as dollar sinks - Sean Seshadri

Gold prices rose to a more than two-week high during North American hours on Tuesday, as the U.S. dollar continued to head south in wake of the Federal Reserve's dovish guidance on the future pace of rate hikes.

Comex gold futures jumped to a session peak of $1,237.95 a troy ounce, the highest since March 2. It was last at $1,237.15 by 9:40AM ET (13:40GMT), up $3.50, or around 0.3%. It settled higher for the third session in a row on Monday.

Meanwhile, spot gold was up $3.40 at $1,237.70 per ounce.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down around 0.6% at 99.59 in New York morning trade, the weakest level since February 3.

The greenback has been on the retreat since the Fed raised interest rates on Wednesday last week, but stuck to its outlook for two more hikes this year, instead of three expected by the market.

Market players awaited comments from a number of Fed policymakers for more clues on the timing of the next U.S. rate hike.

Tuesday sees New York Fed President William Dudley, Kansas City Fed President Esther George and Cleveland Fed President Loretta Mester make public appearances. Fed Chair Janet Yellen speaks on Thursday.

The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.

A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.

Headlines from Washington will also be in focus, as traders await further details on President Donald Trump's promises of tax reform and infrastructure spending.

The House is expected to vote on a heath care bill Thursday, and if it passes that would be seen as a small step moving Congress closer to considering tax reform, though any legislation must also battle its way through the Senate.

Also on the Comex, silver futures for May delivery tacked on 15.2 cents, or about 0.9%, to $17.58 a troy ounce, the most since March 7.

Meanwhile, platinum added around 0.3% to $975.15, while palladium rose 0.9% to $788.85 an ounce.

Elsewhere in metals trading, copper futures dropped 2.9 cents, or 1.1%, to $2.638 a pound, following reports that a strike at a key Indonesian mine has ended, easing concern over a disruption to supply.