Gold firmed on Tuesday as a retreat in the dollar index helped the metal snap a four-day losing streak, but remained close to 2-1/2 week lows as uncertainty over a looming US interest rate hike persisted.

Spot gold was up 0.2 per cent at $1,121.08 an ounce at 1417 GMT, while US gold futures for December delivery were down 80 cents an ounce at $1,120.60.

Expectations for rising rates, which would lift the opportunity cost of holding non-yielding bullion while boosting the dollar, have pushed the metal 5 per cent lower this year and remain gold’s biggest driver, analysts said. Trade is expected to be range-bound ahead of the Fed’s next policy meeting on September 16 and 17.

Silver was up 0.6 per cent at $14.64; platinum was up 1.6 per cent at $999.49 and palladium was up 2.7 per cent at $589.50.

The platinum market deficit shrank in the second quarter, data from the World Platinum Investment Council showed on Tuesday, as rising mine supply and auto catalyst and jewellery recycling outstripped a much smaller increase in demand.

Copper surged boosted by data showing healthy Chinese imports and a bounce in hard-hit equity markets in the world's top metals consumer.

“Base metals got lifted up by the equities market rally and Chinese unwrought copper imports remained healthy in August,” said Xiao Fu, head of commodity market strategy at Bank of China International in London.

Three-month copper on the London Metal Exchange climbed 2.1 per cent to $5,255 a tonne.

Aluminium added 0.9 per cent to $1,615 a tonne, while zinc traded at $1,793 and nickel rose to $9,890. Tin was at $15,200 while lead was at $1,683.

Brent crude rose as a late rally in Shanghai stocks bolstered optimism about the global economy and energy demand.

Futures rose as much as 3.3 per cent in London, reversing a two-day decline, as shares rose in Europe and emerging markets. China’s oil imports dropped to 26.59 million tonnes in August, down 13 per cent from a record the previous month, according to preliminary customs data.

Brent for October settlement climbed $1.11, or 2.3 per cent, to $48.74 a barrel on the London-based ICE Futures Europe exchange at 9:06 a.m. New York time. West Texas Intermediate for October delivery declined 77cents, or 1.7 per cent, to $45.28 a barrel on the New York Mercantile Exchange. Oil prices have fallen almost 60 per cent since June 2014 on a global oversupply driven by near-record pumping from the Organization of the Petroleum Exporting Countries and US oil producers.

Despite calls from some OPEC members for cuts to the group’s output, Saudi Arabian crude production is likely to stay around current levels in the fourth quarter of this year.

Bullion prices (in ₹)

Mumbai: Silver spot 35,735/kg; standard gold 26,295/10 gm; pure gold 26,445/10 gm.(Rates included VAT)

Chennai: Bar silver 35,420/kg; standard gold 26,710/10 gm; retail silver 37.90/gm; 22 carat retail ornament gold 2,497/gm.

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