(Corrects third bullet point to say silver rose, not fell)
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Gold has support near $1,725 area - analyst
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Commerzbank sees gold falling to $1,750/oz in coming weeks
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Silver rises more than 1%
Dec 6 (Reuters) - Gold prices climbed on Tuesday after shedding more than 1% in the last session as the U.S. dollar eased, although traders awaited more cues on the outlook for interest rates by the U.S. central bank.
Spot gold rose 0.4% to $1,776.15 per ounce by 1133 GMT. U.S. gold futures gained 0.4% to $1,788.60.
Better-than-expected U.S. services industry data spooked investors on Monday and raised fears that the Fed might stick longer with aggressive interest rate increases.
As a result, bullion dropped from a five-month high to close 1.6% lower as the dollar rebounded after the data.
"The movement in yields and the U.S. dollar continues to be the key driver for gold prices, with the main support down near the $1,725 area," said Michael Hewson, chief markets analyst at CMC Markets.
"With the Fed due to meet next week the direction of prices is likely to be determined on how the U.S. central bank sees the glide path for future rate rises," Hewson added.
Higher interest rates weigh on the non-yielding metal.
Helping gold stabilise, the dollar index seemed to stall after its biggest rally in two weeks on Monday. A weaker dollar makes bullion less expensive for overseas investors.
"With market trying to seek clarity on Fed's rate hike plan, rate expectations have been sensitive to incoming economic data. Signs of stronger-than-expected demand may lead markets to revisit more hawkish expectations," said IG Market strategist Yeap Jun Rong.
The final Fed meeting of 2022 is scheduled on Dec. 13-14.
Commerzbank sees gold falling to $1,750 in the coming weeks, and expects prices to climb again as soon as the first Fed rate cut comes into view in 2023.
Spot silver rose 1.3% to $22.5298 per ounce, while platinum fell 0.32% to $994.47.
Palladium was little changed at $1,875.05. (Reporting by Arundhati Sarkar and Ashitha Shivaprasad in Bengaluru; editing by David Evans and Louise Heavens)
