Precious metals climbed on Tuesday as the dollar fell amid speculation that major emerging countries could diversify their reserves away from the greenback, boosting bullion as a hedge against the dollar.

Gold futures rose by nearly $4.7 or 0.5 percent and settled at $932.2 an ounce on COMEX while Silver futures gained over a percent on COMEX. However, Gold and Silver gained 0.26 percent and 0.20 percent respectively on MCX.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings stood at 1,132.15 tonnes as of June 16, unchanged from the previous business day.U. S. industrial production in May slid 1.1 percent from June, more than expected, a Federal Reserve report showed.

At a summit, the so-called BRIC nations of Brazil, Russia, India and China demanded more power for developing nations in international financial institutions but they steered clear of any assault on the U. S. dollar's dominance.

We see some amount of risk aversion is creeping among investors on the back of weak industrial output report from the U. S. and continued reports of bankruptcies happening in the U. S. These factors alongside the weakness in dollar may support and hold gold prices. We recommend buying Gold at dips. As far as Silver is concerned, we do not expect any major upside and may trade sideways during the day.