US Gold Gained Modestly

U.S. gold futures rose modestly among other precious metals on Tuesday, bouncing from technically oversold levels hit
previously, dealers said.

June contract gold climbed 50 cents to $419.80 an ounce, after trading from $419.20 to $421.50 on the New York Mercantile Exchange's Comex division.

Gold previously had closed at its lowest mark since early February at about $419, hit by fund selling, triggered by the strong US dollar.

Gold?s correlation with the euro/dollar continues to give the market direction TheBullionDesk.com analysts said. They added that physical buying also offered bullion strong support at around the $418-420 level.

"The greatest risk remains to the downside though, with further fund liquidation a potential catalyst to retest the $410 lows seen in February," they said in a research note.

Spot gold priced at $419.80/420.50 an ounce, above the last New York close near $419.00/9.75. Tuesday's afternoon London fix was at $420.