2018.01.1601:08:00UTC+00Gold Near 4-Month High, Supported by Weak Dollar

Gold prices rose on Tuesday, below a four-month peak nothed in the session earlier, bolstered by a softer dollar wavering near three-year lows.

Spot gold climbed 0.1 percent to $1.341.28 per ounce, after hitting its highest since Sept. 8 at $1,344.44 on Monday.

"Gold seems to be moving higher on account of rising inflationary expectations and a steep drop in the dollar," according INTL FCStone analyst Edward Meir.

The dollar index, which measures the greenback against a basket of currencies, dropped on Monday to its weakest since December 2014 at 90.279. It was last down 0.5 percent at 90.488.

Spot gold may revisit its Sept. 8, 2017 high of $1,357.54 per ounce, as suggested by a retracement analysis, Reuters technical analyst Wang Tao said.

India's gold imports increased 71.52 percent to $3.39 billion in December, according to the Trade Ministry.

Palladium marked a record-peak of $1,138 per ounce on Monday. It was last 0.1 percent higher at $1,126.74 on Tuesday. The metal has seen a sustained rally from high demand in the auto industry amid a supply deficit, analysts said.

Spot silver fell 0.2 percent to $17.31 per ounce. It reached a three-month peak of $17.42 on Monday.

Platinum was down 0.4 percent at $992.49, after hitting its strongest since Sept. 11 at $1,001.40 on Monday.