Gold prices ticked higher on Tuesday as Asian stocks slipped on political ferment in Washington and a global surge in coronavirus cases, although a firmer dollar and higher U.S. Treasury yields limited gains.
Spot gold rose 0.2% at $1,847.96 per ounce by 0235 GMT, after touching its lowest since Dec. 2 in the previous session. U.S. gold futures eased 0.2% to $1,847.30.
Asian stocks mostly traded lower as Democrats in the U.S. House of Representatives barreled towards impeaching U.S. President Donald Trump in the wake of Capitol siege last week.
Short-term gold is still vulnerable to U.S. dollar sentiment and yields, but gold is finding some support around the $1,830 level and it may use that as a base to consolidate and push higher from.
Benchmark 10-year Treasury yields held firm at 10-month highs as investors adjusted for higher government spending, helping the dollar firm and making gold expensive.
Higher bond yields increase the opportunity cost of holding the non-interest yielding gold.