Shafaq News / Gold prices gained on Tuesday, with a weaker dollar and U.S. bond yields providing some support to the precious metal, even as central banks move towards easing economic stimulus.
Spot gold rose 0.5% to $1,773.77 per ounce by 0335 GMT. U.S. gold futures gained 0.5% to $1,774.40.
Supporting gold by making it cheaper for buyers in other currencies, the dollar dropped to a two-week low against a basket of currencies.
U.S. benchmark 10-year Treasury yields also weakened, reducing non-yielding bullion's opportunity cost. "Though gold is range-bound, if it holds above $1,760, it could move back to $1,782 and possibly even $1,800," said Nicholas Frappell, global general manager at ABC Bullion, adding that a break below $1,759, could push it down to $1,737-$1,741.
Gold is often considered an inflation hedge, though reduced stimulus and interest rate hikes push government bond yields up, in turn translating into a higher opportunity cost of holding bullion which pays no interest.
Market participants also took stock of data showing U.S. factory production dropped in September, as an ongoing global semiconductor shortage depressed motor vehicle output, further evidence that supply constraints were hampering economic growth.
