Shafaq News/ Gold prices firmed on Tuesday, as a pullback in the dollar supported demand for greenback-priced bullion and countered pressure from a recovery in U.S. Treasury yields.

Spot gold was up 0.2% at $1,826.95 per ounce, by 0542 GMT. U.S. gold futures gained 0.6% to $1,824.40.

The dollar fought for a footing after falling from near 20-year highs while the tumbling Chinese yuan found a floor, as investors trimmed bets on whether U.S. interest rate hikes will drive further gains.

A weaker dollar makes gold more attractive for buyers holding other currencies.

However, benchmark U.S. 10-year Treasury yields climbed, limiting demand for zero-yield gold.

"Now that we have the much-needed clearout on gold markets, longer-term holders could start to position for the eventual southbound turn on the U.S. hard economic data," said Stephen Innes, managing partner at SPI Asset Management.

Bullion is seen as a safe haven during economic crises and a hedge against inflation.

Gold slid to a 3-1/2-month low on Monday, but reversed course later, tracking a fall in Treasury yields.

Spot gold may bounce more into a range of $1,840 to $1,849 per ounce, as the downtrend from the April 18 high of $1,998.10 may have reversed, Reuters' technical analyst Wang Tao said.

Spot silver edged up 0.1% to $21.61 per ounce, while platinum dropped 0.4% to $941.99, and palladium fell 0.9% to $2,007.69.

"With China on the verge of reopening and likely adding more stimulus, it benefits all hard commodities. And palladium is ultimately used in industrial applications, particularly within the auto sector; that segment could benefit from ports reopening in China," Innes said.

Improving demand and lower supply will help palladium and rhodium swing back into deficit this year and reduce platinum's surplus, consultants Metals Focus said on Monday.

Source: Reuters