Gold futures on the COMEX Division of the New York Mercantile Exchange bounced back on Tuesday, after Federal Reserve Chairman Ben Bernanke reiterated that the U.S. economy is improving at a frustratingly slow pace and that low rates are necessary to boost growth.

A weaker dollar also offered some support to the gold price.

The most active gold contract for April delivery recovered 23.5 dollars, or 1.4 percent, to 1,748.4 dollars per ounce.

Gold, which came under pressure from upbeat U.S. nonfarm payrolls data and fear of subsequent changes to U.S. monetary policy, regained some momentum on Tuesday, as the Fed chief defended the central bank's low-rate stance when he testified to the Senate Budget Committee.

Meanwhile, the Greek government is reportedly preparing a document with a list of painful reforms needed to clinch a new, 130-billion-euro bailout financing package. Renewed hope that a Greek deal is imminent has fueled risk appetite once again, lifting both the euro and the precious metal.

And the decline in the value of the U.S. dollar also added to the appeal of gold as an alternative asset, as a weaker dollar makes gold more affordable to holders of other currencies.

Silver for March delivery jumped 44.4 cents, or 1.3 percent, to 34.194 dollars per ounce. Platinum for April delivery rallied 25 dollars, or 1.5 percent, to 1,654.8 dollars per ounce.