Gold reversed course on Tuesday, climbing towards last week's 4-1/2-month peak, supported by a weaker dollar and bond yields after Federal Reserve officials affirmed their support to keep monetary policy accommodative for some time.
Spot gold was up 0.2% to $1,885.47 per ounce by 0724 GMT, after falling as much as 0.5% earlier in the session.
US gold futures edged 0.1% higher to $1,886.50.
"Weak dollar, rebound in investment demand and no major threat of tapering in near term from the US Federal Reserve are major reasons for gold achieving $1,885 recently," said Jigar Trivedi, commodities analyst at Mumbai-based broker Anand Rathi Shares.
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