Gold futures on the COMEX Division of the New York Mercantile Exchange bounced off on Tuesday, as investors welcomed the agreement of a new fiscal pact for the euro zone, although gains were tempered by a stronger U.S. dollar.

The most active gold contract for April delivery rallied 6 dollars, or 0.3 percent, to 1,740.4 dollars per ounce.

European Union (EU) leaders have finalized a new fiscal treaty for tighter budgetary discipline and pledged to boost economic growth and youth employment in the eurozone's latest efforts to combat debt crisis.

The overall mood in outside markets was relatively upbeat, with sentiment underpinned by suggestions from EU officials that a Greek debt deal will be reached in the next few days, traders said.

Gold gained some strength earlier in the session, as the deal supported investors' confidence in the euro, pushing it up against the U.S. dollar.

But the euro gradually gave back part of earlier gains, as the greenback turned up against the euro as weaker-than-expected U.S. data made traders shift away from riskier assets like stocks and toward relatively safer holdings.

Silver for March delivery dipped 26.5 cents, or 0.8 percent, to 33.262 dollars per ounce.