1st LD Writethru: Gold up ahead of Fed rate hike speculation

Gold futures on the COMEX division of the New York Mercantile Exchange rose Tuesday as investors waited for economic data to hint at the direction the U.S. central bank might take with interest rates.

The most active gold contract for August delivery went up four U.S. dollars, or 0.34 percent, to settle at 1,177.6 dollars per ounce.

Gold was given support as investors speculated on when the U.S. Federal Reserve will raise the interest rates. Analysts said that investors want to be sure that the U.S. Department of Commerce's retail sales report due on Thursday shows positive data, and the weekly jobless claims report shows positive data.

Analysts originally believed that interest rates could rise as early as June, but due to worse-than-expected jobs data in March, now reckon that interest rates will rise in the fall. The next Fed meeting is scheduled for June 15, when investors expect additional news on the timing of a rate increase.

The U.S. Dollar Index also weakened by 0.1 percent, falling to 95.16 as of 1740 GMT. The index is a measure of the dollar against a basket of major currencies. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.

Silver for July delivery fell 0.2 cents, or 0.01 percent, to close at 15.957 dollars per ounce. Platinum for July delivery gained 7.3 dollars, or 0.66 percent, to close at 1,108.5 dollars per ounce. Endite