Gold Overcomes Strong Dollar to Hit $1,210.36 an Ounce

Strong trading in Asia helped drive the gold price up on Tuesday, though a strong US dollar and an anticipated Federal Reserve interest rate hike are threatening its value, Reuters reported.

The yellow metal reached $1,210.36 an ounce on Tuesday for a 0.3-percent gain. Meanwhile, US gold futures for April delivery gained 1.3 percent, or $2.30, to reach $1,210.60 an ounce.

The dollar has risen steadily in the early part of 2015. As the dollar gains value against foreign currencies, the price of dollar-denominated gold increases for international investors. That has the potential to stifle gold’s price growth, but low potential returns on European bonds are currently pushing investors toward the metal despite the cost increase.