Gold futures finished sharply higher on Tuesday on softer dollar making the bullion cheaper for third currency holders. Moreover, recession fears spooked by the surprise policy shift from the Bank of Japan, which raised the upper limit of its tolerance band on 10-year government bonds to 0.5% from 0.25%, raised safe haven appeal of the bullion.
Gold futures for February added by $27.70 or 1.5% to settle at $1825.40 ounce on the Comex division of the New York Mercantile. However, spot gold dipped by $3.78 or 0.21% to $1,814.16 per ounce.