Gold rises for third straight day on falling dollar

Gold prices rose on Tuesday, to extend recovery for the third straight day and hit a 1-week high, thanks to strong retail demand and the US dollar's fall.

Gold prices rose 1.0% to the highest since February 2 at $1,848.57 an ounce, after opening at $1,829.98, and hit a high of $1,828.89.

The yellow metal gained 0.9% on Friday, and posted the second straight straight daily, within recovery attempts from a 2-month low of $1,784.94.

The dollar index fell more than 0.4% today, extending its losses for the third straight day, which weighs down on the prices of gold and other dollar-denominated metals.

The US dollar fell due to a slowdown in demand, while the US stocks jumped to new highs thanks to improved risk appetite.

Gold prices are rising thanks to strong retail demand and bargain hunting after prices fell to a 2-month low, in addition to finding support around the $1,800 barrier.

Gold stocks at the SPDR ETF fell 4.08 metric tonnes yesterday, with the total at the lowest level since June 12 of 1,152.43 metric tonnes.