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After jumping $ 46.90 or 1.5 percent $ 3,228.90 an ounce during Monday season, gold for May delivery rose $ 51.40 or 1.6 percent to $ 3280.30 per ounce.
The price of precious metal increased amidst the weakness in the price of US dollar, with a US dollar slip to 0.3 percent.
The US Dollar index on Monday recorded a decline of 0.7 percent after the announcement of Moody’s on Monday, dowry the US debt rating from AAA to AAA with a notch.
Moody’s stated that the downgrade reflects an increase of over a decade in government loan and interest payment ratio that is much higher than the equally rated sovereign.
Meanwhile, two Federal Reserve officials indicated that interest rates are likely to be in hold due to a folded economic approach until at least September.
Fed Vice Chair Philip Jefferson supported a waiting and viewing approach citing uncertainty and warning against temporary value growth, citing uncertainty.
Atlanta Fed Chairman Rafael Bstic told CNBC that he is bending towards the point rate cut in just one quarter this year, giving concerns about increasing inflation by high import taxes.
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