Gold prices increase as dollar falls

Gold prices ticked up on Tuesday, helped by a softer dollar, while market participants awaited more clarity on the U.S. Federal Reserve's rate hike stance.

Spot gold was up 0.3% to USD 1,745.22 per ounce as of 0251 GMT. Gold futures in the United States rose 0.3% to USD 1,745.40.

Gold prices on Tuesday increased by Rs 243 to Rs 53,046 per 10 gram in futures trade as speculators created fresh positions on a firm spot demand.

On the Multi Commodity Exchange, gold contracts for February delivery traded higher by Rs 243 or 0.46 percent, at Rs 53,046 per 10 gram in a business turnover of 14,853 lots.

Fresh positions built up by participants led to the rise in gold prices, analysts said.

In New York, gold was trading 0.66 percent higher at USD 1,766.90 per ounce.

Silver prices on Tuesday increased by Rs 416 to Rs 62,800 per kilogram in futures trade as participants widened their bets amid a firm spot demand.

On the Multi Commodity Exchange, silver contracts for March delivery gained Rs 416 or 0.67 per cent to Rs 62,800 per kg in 13,197 lots.

Analysts said the rise in silver prices was mainly due to fresh positions built up by participants amid a positive trend in the market.

In New York, silver was trading 0.99 percent higher at USD 21.34 per ounce.