Gold gains 14.2 dollars on bargain hunting

Gold futures on Tuesday rose on the COMEX division of the New York Mercantile Exchange to the highest level since April 1 on bargain hunting and a weaker dollar.

The most active gold contract for June delivery gained 14.2 dollars, or 0.9 percent, to settle at 1,586.7 dollars per ounce.

Gold prices were pushed up as gold market was dominated by bargain hunting Tuesday following losses in four of the previous five sessions. The U.S. dollar's weakening against major currencies also boosted gold.

Japan's assets purchase plan unveiled on Monday was also a boon for gold from a long-term point of view, as other countries may follow suit to maintain their competitiveness, market analysts say.

Investors are looking forward to the minutes of the U.S. Federal Reserve's last meeting held on March 20, which is to be released Wednesday. At the last meeting of the Fed, monetary policy makers decided to continue with the program of buying 85 billion dollars worth of assets a month.

Deutsche Bank on Tuesday cut its average gold price forecast for 2013 by 11.8 percent to 1,637 dollars an ounce, on the basis of a strengthening dollar and improving U.S. economy.

Silver for May delivery rose 74.3 cents, or 2.74 percent, to close at 27.881 dollars per ounce. Platinum for July delivery climbed 16.1 dollars, or 1.05 percent, to close at 1,553.1 dollars per ounce.