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Gold prices climbed to a one-week high on Tuesday, buoyed by a softer U.S. dollar, while the market awaited comments from Federal Reserve officials for cues on the U.S. interest rate outlook.

Spot gold rose 0.4% to $2,623.54 per ounce by 0246 GMT, the highest since Nov. 12. Prices rose 2% on Monday.

U.S. gold futures gained 0.5% to $2,627.60.

The U.S. dollar pulled back as profit-booking kicked in after last week's stellar rally. A weaker dollar makes bullion less expensive for buyers holding other currencies.

"Recent market movements are largely technical, influenced by an overbought U.S. dollar," said Kyle Rodda, financial market analyst at Capital.com.

The recent strong economic data has raised concerns on whether the Fed will continue to cut rates after 75-basis-points of reductions since September. Several Fed officials are due to speak this week.

Gold price move will be a reflection of any change in expectations about the December meeting, Rodda said, adding that any data or comments from officials pertaining to it will be relevant.

Traders currently see a 58.8% chance of a 25-basis-points cut in December versus 41.2% odds of holding the rates steady.

On the geopolitical front, Russia unleashed its largest air strike on Ukraine in almost three months on Sunday, severely damaging the country's power system.

Non-yielding assets like bullion thrive in lower interest rates environment and amid geopolitical uncertainties.

A tight U.S. labour market is still adding to inflationary pressures, although less than it did in 2022 and 2023, according to San Francisco Fed economists.

Among other metals, spot silver rose 0.5% to a one-week high of $31.32 per ounce. Platinum ticked 0.3% higher to $969.80.

Palladium was steady at 1,005.20 after rising more than 5% on Monday.