Gold extends rally as weak dollar, inflation jitters lift appeal

Glittering haven: Gold of various weights and sizes sit at Gold Investments Ltd bullion dealers in London. — Bloomberg

BENGALURU: Gold prices extended gains on Tuesday, hitting their highest level in more than three-and-a-half months, as a weaker U.S. dollar and growing inflationary pressure bolstered the metal's appeal as an inflation hedge.

Spot gold was up 0.2% at $1,869.12 per ounce by 0642 GMT, after hitting its highest since Jan. 29 earlier in the day. U.S. gold futures rose 0.1% to $1,869.90.