Gold futures rallied on Tuesday and reached their highest in last three months. Gold faced correction in prior two sessions which resulted in buying frenzy on lower prices on Tuesday. Moreover, weakening US dollar also gave metals a boost.

Gold futures contract for April delivery surged 0.8 percent or $13.50 to settle at $1,788.40 per ounce on the Comex division of the New York Mercantile Exchange. This was the highest settlement since mid November. Gold has surged 14 percent in the current year so far.

The dollar index DXY which measures the greenback’s performance versus its six major rival currencies fell to 78.257 on Tuesday as compared to 78.547 on Monday’s North American trading session.

Precious metals analyst, Jim Steel from HSBC in New York commented, “We’ve got a very nice jump for the euro that has lifted gold up pretty strongly.”

Among other metals, silver futures contract for March delivery surged 4.6 percent or $1.62 to settle at $37.14 per ounce which is its highest since the month of September. Silver futures have advanced 33 percent in this year till now.

Copper futures contract for March delivery jumped 0.8 percent or $0.03 to settle at $3.91 per pound. Copper has gained 14 percent in the current year so far.

Platinum futures for April delivery soared 0.5 percent or $9.20 to settle at $1,723.50 per ounce while palladium futures for March delivery gained 2.1 percent or $14.45 to settle at $719.75 per ounce.