"Certainly, this is fund buying in gold, silver, copper and platinum, and I think it's all triggered by the euro rising," said Leonard Kaplan, president of Prospector Asset Management in Evanston, Illinois.
Dollar-denominated gold tends to climb with a weaker US currency because the metal gets cheaper for those holding foreign currencies.
By 9:47 am EDT, December delivery gold rose $7.30 to $474.30 an ounce at the COMEX division of the New York Mercantile Exchange, dealing from $466.30 to $474.50, which was its highest mark since October 19.
The dollar eased, although it still held within a recent trading range with the euro, after Federal Reserve Chairman nominee Ben Bernanke told the London Times that US inflation pressures should remain confined to the energy sector.
Analysts said this was in stark contrast to other Fed officials and Bernanke was coming out as a dove.
Gold also got a boost as oil rose back toward $61 a barrel, while US stocks opened lower. Firmer crude supports gold as investors often use the metal as a hedge against inflation.
Spot gold likewise rose more than 1 percent on Tuesday. Bullion jumped $7 to $472.00/472.80 an ounce, from the last late New York quote at $465.00/5.70. Tuesday's morning fix in London by bullion dealers was at $467.
The market could target the recent 18-year highs of $480.25, basis spot, and $483.10 in New York futures, in the coming days, dealers said. Some have said that a test of the psychological $500 level is possible if the rally gains enough traction.
"The question is can we make new highs? That would signal something serious for the market," said Kaplan. "Right now, it's just a bit of a retracement, and I wouldn't get too excited."
Technicians put resistance in COMEX December gold at $483 and, higher up, at the psychological $500 level, with support seen as $465 and then at $457.
Estimated COMEX volume reached 12,000 lots by 9 am.
December silver rose 13.2 cents to $7.84 an ounce, trading from $7.685 to $7.86. Spot silver was at $7.79/82, from Monday's close at $7.64/67. It fixed at $7.72.
NYMEX January platinum was up $10.20 at $943 an ounce. Spot platinum gained to $936/940. December palladium rose $4.20 to $218 an ounce. Spot edged to $213/216.