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Gold rose on Tuesday after a top Federal Reserve official quelled the expectation of a US interest rate hike next week.

The Fed should avoid removing support for the US economy too quickly, board governor Lael Brainard said on Monday in comments that solidified the view the central bank would leave rates unchanged next week.

"The comments balance hawkish views by other Fed officials and gold is moving on that," said Yuichi Ikemizu, head of commodity trading at Standard Bank in Tokyo.

"It is still the same story of a $1,300-$1,400 range for gold. I don’t think we are going to see any major move until the Fed meeting next week."

Gold investors are in thrall to comments from Fed officials in a bid to discern the trajectory of U.S. monetary policy. While Boston President Eric Rosengren said on Friday the economy could overheat if policy makers wait too long, Brainard said on Monday there’s no reason to rush. That cut the odds of a hike this month to 22 percent from 30 percent on Friday, futures prices indicate.

“Brainard stuck to her message on exercising caution and prudence,” Bryan Lum, a Singapore-based strategist with Phillip Futures Pte, said in an e-mail. “Interest rate expectations corrected accordingly” and helped set a price floor, which will likely remain supported until inflation numbers this Friday, he said.

"As the market reduces the likelihood of a near-term raterise and if oil losses stabilize, gold prices should find abottom, at least in the run up to the FOMC," HSBC analyst JamesSteel said in a note.

Reference: Bloomberg, Reuters