BENGALURU (Sept 28): Gold prices edged higher on Tuesday, buoyed by concerns over the possible fallout from debt-laden developer China Evergrande's crisis, though a firm dollar and gains in U.S. Treasury yields kept the safe-haven metal in a narrow range.
Spot gold rose 0.1% to $1,751.96 per ounce by 0312 GMT, while U.S. gold futures were flat at $1,752.70.
"Gold seems content to range between $1,740 and $1,760 at the moment with Asian buyers adding to longs on dips with Evergrande and China growth fears encouraging regional buyers to add more weight in gold as a haven play," said Jeffrey Halley, senior market analyst for Asia Pacific at OANDA.
However, gold still remains a sell on rallies, he added.
China Evergrande has 30 days to make the payment before it falls into default, while its wealth management unit is now being investigated.
Gains in the greenback-denominated bullion were, however, limited by a firmer dollar.
The benchmark U.S. 10-year Treasury yields held close to three-month peak, touched on Monday on signals the U.S. Federal Reserve is shifting towards tighter policy.
U.S. central bank officials tied reduction in Federal Reserve's monthly bond purchases to continued job growth, with a September employment report now a potential trigger for the central bank's bond "taper."
Fed Chair Jerome Powell is due to testify later in the day before Congress on the central bank's policy response to the pandemic.
Powell said the central bank would move against unchecked inflation if needed.
While gold is often considered a hedge against higher inflation, a rate hike would increase the opportunity cost of holding gold, which pays no interest.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.3% to 990.32 on Monday.
Silver was steady at $22.64 per ounce.
Platinum rose 0.3% to $983.08 per ounce, while palladium eased 0.3% to $1,957.94.