Gold prices rose sharply during the European trade, with continued growth in the previous session as investors reconsidered the likelihood that the Federal Reserve will raise interest rates this year.

Later, during the US session, gold prices retreated from highs against the dollar strength.

A day earlier, gold rose $ 5.40, or 0.4%, after disappointing US economic data forced market participants to revise the expectations of the next increase in interest rates in the US, putting pressure on the dollar.

For the year gold has risen in price by almost 26% to date, helped by concerns about global economic growth and expectations of monetary stimulus.

Stocks of the world's largest gold exchange-traded fund SPDR Gold Shares on Tuesday fell by 0.12 percent to 972.62 tons.

The cost of the October gold futures on COMEX rose to $ 1,359.00 an ounce.