Prices of gold rallied on Tuesday, tracking increases in global rates on expectations of policy alleviation by the US central bank and other major lenders to lift the global economy hounded by the coronavirus.

Spot gold rose 0.4 percent at $1,591.84 an ounce, and US gold futures ended 1.8 percent higher at $1,594.80. Gold investors would keenly keep an eye on the result of the Group of 7 meetings slated Tuesday, where finance leaders will tackle new measures to combat the virus and its negative effects on the global markets.

Gold and silver have both made impressive gains early Tuesday, along with the bond markets. But after last week's wild declines, more misery could be in the offing for precious metal bulls than gains this week. As reported earlier, safe-haven gold continued to inch lower despite widespread worries over the outbreak.

The World Bank and International Monetary Fund on Monday announced they were prepared to help member nations address the human and economic challenges of the escalating coronavirus, including through emergency financial aid, as per report by Reuters.

According to Mumbai-headquartered industry committee IBJA or India Bullion and Jewellers Association, the indicative market price of gold was pegged at Rs42,020 per 10 grams during pre-market trading. Gold prices vary in different parts of the country - the second-biggest the consumer of the yellow metal - due to factors like excise tax and other related charges.

Gold has benefitted from growing expectations of financial stimulus by major lenders including the US Federal Reserve. Dismal figures from China's factory PMI and the rising spread of the virus outside of China has also hiked safe-haven demand, Ravindra Rao, vice president-director of commodity research at Kotak Securities, said.

Despite the precious metal's recent lackluster performance its price can easily go up if the central bank reduces interest rates by 50-basis points in its next meeting, Chantelle Schieven, chief of research for Murenbeeld & Co noted.

On the sidelines of the 2020 Prospectors and Developers Association of Canada conference, Schieven pointed out that she is more bullish on gold than she has been in a long while as big lending firms plan to cut rates to bolster consumer sentiment, dragged down by the global epidemic.

Meanwhile, palladium was down 2 percent to $2,542.50 per ounce, having dropped as much as 14 percent late Friday, the most since the 2008 financial turmoil. Platinum fell 0.7 percent to $858.87, while silver shone 0.4 percent to $16.70 after both metals dipped to their lowest in around six months.