By Deborah Levine, MarketWatch
NEW YORK (MarketWatch) -- Gold futures rose on Tuesday, pushing prices on the precious metal to the highest in six weeks, as the U.S. dollar declined, increasing the appeal of gold as an alternative investment.
Gold for April delivery rose $4.30, or 0.4%, to $1,122.30. It earlier touched $1,125.50, the highest on a closing basis since Jan. 19.
The dollar index (DXY 80.60, -0.06, -0.07%) , which measures the greenback against a trade-weighted basket of six major currencies, slid to 80.607, from 80.753 in late North American trading Monday.
Commerzbank analysts also noted that investors have added to bets that gold will rise higher. During the week of Feb, 23, speculators increased their net long positions to more than 146,000 contracts, the highest in four weeks, the firm said.
Copper prices also gained, adding to Monday's big increase amid concerns that the earthquake in Chile would curtail supply from the world's largest producer of the industrial metal. High-grade copper for May delivery rose 0.2% to $3.36 a pound. See more on copper and Chile.
