After hitting a seven-month high at the start of the week, the U.S. dollar saw a corrective pullback on Tuesday, which has benefitted gold prices. Axel Merk, founder of California-based Merk Investments, said the end of the dollar's dominance may be unfolding – not because of another currency but rather because of money market funds. This, he says, is good news for gold. On the topic of the Fed rate hike, Merk said, ‘If the markets have a fit, they're not going to hike. If the markets are going to have smooth sailing until December, 'yes,' we'll hike,’ Merk said. Regarding Thursday’s much anticipated ECB meeting, Merk said, ‘Draghi is reasonably happy where things are – the market is pricing in continued easing.’ Gold and silver prices ended the U.S. day session moderately higher. Short covering in the futures market and perceived value-buying in the cash market were featured Tuesday. December Comex gold settled at $1,262.90 an ounce, up 0.5% on the day. December Comex silver settled nearly 1% higher at $17.638 an ounce.