Gold rallies to three-week high as dollar swoons

Gold prices surged on Tuesday to a three-week high after the dollar skidded against a basket of currencies to a six-week low, with gold drawing support from expectations of a gradual approach from the Fed to raising interest rates this year. 

Gold last traded at $1,239.6 an ounce, up from the opening of $1,241.4, with an intraday high at $1,234.4, and a low at $1,226.7. 

Gold's surge came on the back of dollar's slump against main rivals according to their inverse relation, as investors shun the dollar following the Federal Reserve's and G20 meetings. 

Chicago Fed President Charles Evans said the Federal Reserve is on track to increase interest rates twice this year, reinforcing expectations of the bank's commitment to a slow and gradual approach to tightening policy this year. 

The dollar faced more pressure after the G20 meeting dropped the pledge of keeping global trade free and open under pressure from the U.S. administration, which wants to weaken the dollar to compete better, raising demand on gold as a safe haven.