Gold futures on Tuesday regained its foothold after a three-day slide on a weakened U.S. dollar and renewed investor confidence fuelled by encouragement that European fiscal regulators are working overtime on a bailout fund to address the region's debilitating sovereign-debt crisis.

Gold prices for December delivery gained $57.70, or 3.6 percent, to settle at $1,652.50 per ounce on the Comex in New York. It was the highest that the commodity posted since Aug. 8. The precious metal plummeted by as much as $104.80 to $1,535 on Tuesday, the lowest it had registered since July 8.

Improving crude oil and wheat prices also contributed to the bullion's uphill, which have been taking a beating on the trading floor since Tuesday last week.

The Greek Parliament had allowed imposing a new property tax to combat a budget gap, at the same time help the government acquire assistance from global creditors. The country had been groping to meet budget objectives as well as implementing austerity plans to avoid default.

But some market watchers are unconvinced Europe is acting fast enough to control the region's government debt crisis, saying Euro regulators have yet to successfully reverse the fiscal contamination. Moreover, even the European officials have to announce of a concrete bailout plan based from its European Financial Stability Fund (EFSF).

Traders and analysts believe the gold bullion will continue to spread its enticing charm on investors, as the Swiss bank UBS reported on Monday it saw robust buying in Asia, especially in India, the region's foremost gold bullion consumer.

In Hong Kong and Singapore, payments for physical delivery of gold climbed to their highest since February, prompted by strong demand from both retail and industrial consumers.

The buying spree will help maintain gold's 100-day moving average at around $US1,640, dealers said.

Meanwhile, silver for December delivery rallied $1.560, or 5.2%, settling at $31.536 per ounce. But silver's rollercoaster price movements are irritating investors, forcing more and more to abandon the commodity. Silver prices dropped around 26% over five days the previous week, the second decline of a huge decline registered this year.

Other metals followed gold's uptick on Tuesday. December copper hiked 16 cents, or 4.8%, closing at $3.44 a pound. Likewise for platinum and palladium. October platinum gained $2,710, or 1.8%, to $1,574 an ounce. December palladium grew $22.55, or 3.6%, to $649.95 an ounce.