Gold futures settle higher in volatile trading

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Tuesday, tracking moves in the dollar with gains limited by strength in U.S. equities, as traders await a monetary policy speech from Federal Reserve Chairwoman Janet Yellen due later this week.

Shifting expectations about the Federal Reserve's interest rate policy ahead of a closely watched retreat in Jackson Hole, Wyoming., where Yellen will speak on Friday, have resulted in small gyrations in the greenback.

The most active gold contract for December delivery rose 2.7 U.S. dollars, or 0.2 percent, to settle at 1,346.1 dollars per ounce.

Investors are expected to parse Yellen's speech for clues on the near-term fate of interest rates. The debate over the odds, however slim, for a typically gold-negative rate hike yet this year continue to intensify in the lead-up to the market-sensitive event.

Meanwhile, the precious metal was put under pressure as a report released by the U.S. Department of Commerce on Tuesday showed new home sales increasing by 12.4 percent to a 654,000 annualized rate during the month of July. Analysts note that this figure was better-than-expected and put pressure on the precious metal.

Gold was given support as the U.S. Dollar Index remained negative throughout the day, ending up at only 0.02 percent down at 94.52 as of 1815 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 September delivery rose 6.3 cents, or 0.33 percent, to close at 18.922 dollars per ounce. Platinum for October delivery added 3.1 dollars, or 0.28 percent, to close at 1,111.3 dollars per ounce. Endite