KONTAN.CO.ID - JAKARTA. Gold prices rose on Tuesday as optimism surrounding top consumer China's decisions to further ease COVID-19 restrictions weighed on the dollar, while resilient U.S. yields cast a shadow over non-yielding bullion's advance.

Spot gold rose nearly 1% to $1,814.69 per ounce by 10:15 a.m. ET (1515 GMT). U.S. gold futures were up 1% as well at $1,823.00.

While the expectation for U.S. Federal Reserve rate hikes coming to an end has been a supportive environment for gold, if benchmark U.S. Treasury yields "do remain a little lofty, that certainly could be a slight barrier to gold's rise," said David Meger, director of metals trading at High Ridge Futures.

The dollar index edged lower, and benchmark 10-year yields held close to their highest in over a month.

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Gold has gained nearly $200 after falling to a more than two-year low in late September, as expectations about slower interest rate hikes from the Fed dimmed the dollar's allure and lowered the opportunity cost of holding bullion, which pays no interest.

Focus today seems to be on top gold consumer China relaxing quarantine rules, in a major step towards easing curbs on its borders, which have been largely shut since 2020.

"The gold futures bulls have the overall near-term technical advantage. Prices are in a seven-week-old uptrend on the daily bar chart," with the first resistance at $1,825 an ounce, said Jim Wyckoff, senior analyst at Kitco Metals, in a note.

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In other metals, spot silver rose 1.5% to $24.07 per ounce while platinum dropped 1.6% to $1,012.25.

Palladium jumped 2.9% to $1,814.13, earlier in the session hitting its highest in over a week at $1,817.68, on news about China opening up.

"We continue to see palladium as the stronger of the two metals (platinum and palladium) almost specifically due to supply constraints," Meger highlighted. 

Editor: Wahyu T.Rahmawati