On Tuesday, spot gold prices rose marginally by 0.23 percent to close at $1260.2 per ounce after U.S. jobs data came in better than expected and the dollar turned positive, while investors awaited U.S. inflation figures later this week for further clues about the pace of interest rate rises.
Investors took note of news from Japan, which said on Tuesday it was possible that North Korea had already developed nuclear warheads.
Investors awaited U.S. inflation data this week as well as clues as to when the U.S. Federal Reserve will begin reducing its $4.2 trillion bond portfolio.
Spot silver prices rose by 1.1 percent on Tuesday to close at $16.4 per ounce in line with rise in gold prices while rally in base metals also acted as a positive factor
On Monday as well, base metals had rallied as Chinese rebar steel futures surged around 7 percent to their highest in more than four years on expectations of reduced supply in the winter due to Beijingimposed capacity curbs, thereby leading to rally in industrial metals.