Precious gold rebounded on Tuesday trading after halting its rally yesterday on mounting speculation the Fed would announce further stimulus this week to boost the economy. The shiny metal rose to a high of $1732.52 an ounce after opening today's trades around $1724.62, where it continued its rise after dropping yesterday on the dollar's rebound. Gold advanced on Friday after a downbeat nonfarm payrolls report added to signs the Fed will probably launch QE3 to alleviate unemployment that remained above 8 percent for 43 months. Now, the main focus in market is on the Fed September 12-13 meeting especially after Bernanke's comments last month that adding to non-standard measures, which were unveiled in 2008, might be needed to lower joblessness. The shiny metal has benefited from money printing by the Fed from two sides; firstly as an inflation hedge and secondly as the dollar weakens which enhances demand on the yellow metal as an alternative investment. With the Fed spending $2.3 billion from 2008 to 2011 in two rounds, gold nearly doubled its price during this period. Recently, gold has been tracking gains and losses in shares, following the general sentiment which is largely dominated by the Fed moves and the latest development in the euro area debt crisis, where it climbed to $1,741.70 on September 7, the highest since February 29. On the other hand, eyes will track the verdict of the German constitutional court tomorrow as it will decide whether Germany can contribute to the European rescue fund, which plays a significant role in the European Central Bank's plan announced last week to combat the lingering European debt saga. Meanwhile, the dollar is showing a slide to four-month low against a basket of major currencies as depicted by the dollar index which fell to a low of 80.14 falling from a high of 80.43.

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