U.S. Q4 GDP growth estimates due on Thursday
Gold could test 1,900 if Fed signals more rate hikes analyst
Holdings in iShares Silver Trust rose 4 on Monday

Jan 24 Reuters Gold prices rose on Tuesday as the dollar39;s retreat amid expectations for a lessaggressive interest rate hike strategy from the U.S. central bank made bullion a more attractive bet.

Spot gold was up 0.3 at 1,936.32 per ounce by 0923 GMT. U.S. gold futures gained 0.5 to 1,937.70.

The dollar index dipped 0.2, making greenbackpriced bullion cheaper for many buyers.

Bullion has gained nearly 120 since the beginning of 2023, backed by expectations that the U.S. Federal Reserve might increase rates by only 25 basis points at each of its first two meetings this year, after slowing its pace to 50 bps in December 2022.

Policy signals from the upcoming FOMC meeting may either validate gold39;s recent gains or greatly disappoint bullion bulls, said Han Tan, chief market analyst at Exinity.

Some analysts also noted that an expected recession could force the U.S. central bank to loosen its monetary policy tightening.

However, if the Fed signals its persistence with more rate hikes than markets currently forecast, that may unwind some of the precious metal39;s yeartodate advances and drag it back closer to the psychological 1,900 mark.

The U.S. fourthquarter GDP growth estimates due on Thursday could set the tone for the Jan. 31Feb. 1 Fed policy meeting.

Although gold is considered a hedge against…