By Gina Lee
Investing.com – Gold was up on Tuesday morning in Asia, thanks to declines in both the dollar and U.S. bond yields that provided some support to the yellow metal.
Gold futures were up 0.57% to $1,775.75 by 12:40 AM ET (4:40 AM GMT).
The dollar, which normally moves inversely to gold, was down on Monday and remained near the lower part of its recent range. Benchmark U.S. benchmark 10-year Treasury yields were also on a downward trend.
U.S. factory data released on Monday showed that industrial production contracted 1.3% month-on-month and grew a smaller-than-expected 4.6% year-on-year, in September. An ongoing global semiconductor shortage contributed to a decrease in motor vehicle output, further proof that supply constraints are hampering economic recovery from COVID-19.
In Asia Pacific, the Reserve Bank of Australia released the minutes from its latest meeting earlier in the day.
Meanwhile, Monday’s Bank of Canada business outlook survey anticipated stronger demand as COVID-19 outbreaks are brought under control. However, it also said current supply constraints could limit sales and put upward pressure on costs.
In other precious metals, silver rose 0.5%, platinum gained 0.4% and palladium was up 0.3%.
Russian palladium producer Nornickel, the world’s largest, said on Monday that it has begun a contest for scientists to find new ways to use the metal. Palladium has been hit by a chip shortage in the auto industry, Nornickel’s top consumer sector.