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Gold prices rose for a second day on Tuesday, supported by a weaker U.S. dollar amid uncertainty over when the U.S. Federal Reserve will raise interest rates.

"Gold is riding on the dollar weakness," said Helen Lau, analyst at Argonaut Securities in Hong Kong. "The U.S will eventually raise interest rates, but investors still feel that central banks across the world will continue to be accommodative," she said.

Gold is likely to recover to above $1,300 an ounce next year as a pickup in physical demand counters more potential US rate increases, a Reuters poll at an industry event showed.

The precious metal had lost nearly 9 per cent from July's two-year highs to trade around $1,255 an ounce on Tuesday, hit by expectations the US Federal Reserve would raise interest rates in December for the second time in a year.

Next month's closely watched US election could spur some safe-haven buying, but any Fed moves will remain key to gold's fate, according to 11 analysts, bankers, traders and refiners attending the London Bullion Market Association conference in Singapore.

Reference: Reuters,Businesstoday