• Spot gold gained 0.5 percent to $1,330.84 per ounce by 1:34 p.m. EDT (1734 GMT), while U.S. gold futures for June delivery settled up $9, or 0.7 percent, at $1,333.
• Gold is often seen as a safe store of value in times of elevated geopolitical or financial risk.
• Gold prices gained after three days of losses on Tuesday as the dollar retreated from an earlier three-month peak and U.S. equities weakened, even as benchmark U.S. Treasury yields passed 3 percent for the first time in more than four years.
• The yield on U.S. 10-year Treasury notes rose above 3 percent as investors reduced their U.S. bond holdings on worries about rising inflation and growing government debt supply.
• Rising yields typically make gold less attractive since it does not bear interest.
But a retreat in world stocks after yields crossed 3 percent and weakness in the U.S. dollar drew investors to gold and lifted its value, since it is priced in the greenback, said David Meger, director of metals trading at High Ridge Futures in Chicago.
"The dollar has been a driving force as of late. We've been seeing a little weakness in equities today, too," Meger said.
• It has benefited in recent weeks from concerns over the U.S.-China trade dispute, sanctions on Russia and unrest in the Middle East, but has been kept in check by the prospect of further interest rate hikes from the Federal Reserve.
• "Based on interest rates, prices should be lower," said Capital Economics analyst Simona Gambarini. "But there are a lot of other factors, and a lot of tensions that have been boosting prices... we think gold will continue to trade in this range between $1,300-1,350 depending on what happens with those risks, and the Fed hiking rates."
• Autocatalyst metal palladium lost 0.5 percent to $973.65 an ounce, earlier hitting near a two-week low of $960.47.
• Platinum increased 1.6 percent to $932.10 an ounce, earlier dropping to $910.50, a 2-1/2-week low. Silver gained 1.2 percent to $16.72 an ounce after falling more than 3 percent in the previous session.
Reference: Reuters
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