Gold prices rose on Tuesday as the US dollar eased due to uncertainty around President-elect Donald Trump's tariff plans, with further support coming from top consumer China's central bank adding to its gold reserves for a second straight month.

Spot gold was up 0.3 percent at $2,642.32 per ounce, as of 1005 GMT. US gold futures rose 0.2 percent to $2,653.60.

"The main factor is the softening of the U.S. dollar over the last two sessions, which has provided some relief for the precious metal," said Ricardo Evangelista, senior analyst at ActivTrades.

The dollar index eased towards a one-week low versus major peers as traders considered whether President-elect Donald Trump's tariffs would be less aggressive than promised following a report in the Washington Post.

Trump however denied the report, deepening uncertainty about future US trade policies.

A stronger dollar makes bullion more expensive for other currency holders.

Traders are setting their sights on Friday's US jobs report for Fed policy clues, along with job openings data due later in the day, ADP employment and the minutes from the Fed's December meeting on Wednesday.

Fed Governor Lisa Cook on Monday said that the Fed can be cautious about any further rate cuts given a solid economy and inflation proving stickier than previously expected.

Bullion is considered a hedge against inflation, but high rates reduce the non-yielding asset's appeal.

Meanwhile, China's gold reserves stood at 73.29 million fine troy ounces at the end of December as the central bank kept buying gold for a second straight month, official data showed.

"By re-entering the market in December, Beijing signaled that its gold acquisition program remains active—a development likely to lend continued support to the precious metal's price," Evangelista added.

Gold prices gained about 27 percent in 2024, mainly boosted by robust central bank purchases and Fed rate cuts.

Spot silver gained 0.8 percent to $30.18 per ounce, platinum added 1.7 percent to $948.95 and palladium rose 0.7 percent to $926.58.

Gold prices are projected to continue their upward trend into 2025, building on significant gains from 2024.

Analysts attribute this anticipated rise to several key factors including central bank purchase, geopolitical tension, monetary policy shifts and economic policies.

Goldman Sachs forecasts gold prices could reach $3,000 per ounce by the end of 2025 while BullionVault survey predicts an increase to $3,070 per ounce by the end of 2025, a 17.8 percent rise from current levels.