Gold futures jumped by 2% driven by the fall of the dollar, silver jumped by more than 6%.

"[hot] tomorrow! The grand annual meeting of the metal industry will begin! Come and watch the business cards of the guests.

SMM: COMEX gold futures jumped more than 2% on Tuesday, rebounding from a five-month low hit in the previous session, as the dollar fell and bets on a stimulus package in the United States increased gold's attractiveness as a hedge against inflation. Silver prices surged more than 6 per cent.

13:30 New York time (02:30 on December 2), the most actively traded COMEX February gold futures rose 38 U.S. dollars to settle at 1818.90 U.S. dollars per ounce, or 2.1 percent.

Jeff Wright, executive vice president of GoldMining Inc, said gold prices rebounded from "bargain buying", a bit like "Black Friday / Cyber Monday in the gold industry".

He said that "light ISM data" and the US Senate could reach a compromise on the $908 billion novel coronavirus epidemic relief bill, also boosting prices. According to the Institute for supply Management, the US manufacturing index fell to 57.5 per cent in November from a 21-month high of 59.3 per cent last month.

"it will take time to repair the decline in gold prices since November, but getting back above $1800 is the first step for bulls to return to power," Wright said.

Gold hit $1767.2 a troy ounce on Monday, its lowest level since July 2, as investors scrambled to buy riskier assets.

Edward Moya, senior market analyst at OANDA, said: "We are seeing gold back to the level of $1800 an ounce, which is largely related to the weakness of the dollar."

The dollar fell on expectations of more stimulus in the US, making gold more attractive to investors holding other currencies.

In a speech released on Monday, Federal Reserve Chairman Colin Powell highlighted the challenges of vaccine production and mass distribution before the impact on the economy will be clear.

Gold, seen as a hedge against inflation and devaluation, has risen more than 19 per cent this year, thanks to unprecedented stimulus measures designed to help economies hit hard by the epidemic.

(UBS) analysts at UBS said in a research note on Tuesday that gold prices had been sold off "due to the earlier-than-expected progress of COVID-19 vaccine" because of uncertainty about the Fed's "next steps and improvement in macro data".

The investment bank expects US real interest rates and the dollar to fall further in the first quarter of 2021, during which time gold prices will peak, but believes gold's "upside" will shrink because of "emerging positive economic forces". UBS analysts cut their forecast for gold prices in the first quarter to $1950 from $2000 an ounce.

March silver futures, the most actively traded on Tuesday, rose $1.497, or 6.63%, to settle at $24.09 an ounce.

Fawad Razaqzada, a market analyst at ThinkMarkets, said in a report that increased industrial demand should help silver outperform gold.

January platinum futures rose $38.0 to settle at $1003.9 an ounce.

March palladium futures rose $23.80 to settle at $2429.70 an ounce.

Among COMEX's other metals, the most actively traded three-month copper contract rose 4. 70 cents to settle at $3.4850 a pound.