News gold prices edged up on Tuesday, as a weaker dollar and lower U.S. bond yields provided some support to the precious metal. Spot gold rose 0.2% to $1,767.91 per ounce by 0126 GMT. U.S. gold futures rose 0.2% to $1,769.60. As gold rose, buying the dollar became cheaper, dropping 0.1% to languish near recent lows.

Benchmark 10-year U.S. Treasury yields also weakened, reducing the opportunity cost of non-yielding bullion. Data on Friday also showed U.S. factory output fell the most in seven months in September, as a persistent global shortage of semiconductors weighed on motor vehicle output, further evidence that supply constraints were hampering economic growth.

Australia’s central bank said the Delta variant of COVID-19 has hurt the country’s economic recovery. Meanwhile, on Monday, the Bank of Canada conducted its regular survey of businesses, anticipating stronger demand as COVID-19 fades. It also said current supply constraints could limit sales and put pressure on costs. Gold is often seen as a hedge against inflation.

While reduced stimulus and higher interest rates push up government bond yields, they can raise the opportunity cost of holding non-yielding bullion. Spot silver rose 0.5% to $23.29 an ounce, while platinum rose 0.4% to $1,039.40 and palladium gained 0.3% to $2,020.80.

Russia’s Nornickel, the world’s largest palladium producer, said Monday it has launched a contest for scientists to find new ways to use the metal, which is being hit by a chip shortage in the auto industry, its main consumer sector. Data/ Event Ahead is based on (GMT) 1230 U.S. Housing Starts Number Sept. That’s all the daily Forex and commodity news about gold prices rising on the dollar.