The dollar eases, and gold reaches a new one-week high, with Fed minutes on the horizon.

On Tuesday, gold prices reached their highest point in over a week due to the dollar's decline, while the focus shifted to the U.S. Federal Reserve's latest monetary policy meeting minutes for indications on potential interest rate cuts.

The price of spot gold increased by 0.5% to $2,027.19 per ounce, while U.S. gold futures rose 0.8% to $2,039.8.

Overseas buyers found greenback-priced bullion more affordable as the dollar index dropped by 0.2%.

The central bank of the United States will release the minutes from its January policy meeting on Wednesday.

According to David Meger, director of metals trading at High Ridge Futures, the likelihood that the Fed will lower rates by mid 2024 will continue to be an underlying supportive factor for the gold market.

The Fed minutes will likely delay rate cuts until May or June, which will negatively impact the gold market, according to Meger. He also stated that there is fundamental support below the $2,000 level.

Lower interest rates boost the appeal of non-yielding gold.

Last week's unexpectedly hot U.S. consumer and producer prices data dampened expectations for a March rate cut, but markets are now pricing a 78% chance of a cut in June, according to the CME Fed Watch Tool.

Analysts at TD Securities noted that gold prices have remained stable due to robust market demand.

Silver will always be sold at a certain price, but the market outlook suggests that higher prices will be required to meet the ongoing period of structural deficits.

Spot silver was up 0.2% at $23.06 per ounce.

Platinum gained 0.6% to $904.15 per ounce, while palladium rose 2.8% to $980.14.