SINGAPORE: Gold prices rose in Asian trade on Thursday as a Democrat sweep of Georgia’s Senate runoffs boosted expectations of additional US stimulus, although soaring Treasury yields held back bullion below a two-month high scaled in the previous session.

Spot gold advanced 0.4% to $1,925.90 per ounce by 0652 GMT. US gold futures climbed 1% to $1,927.10.

Prices had declined as much as 2.5% after scaling a high since Nov. 9 on Wednesday, as 10-year US Treasury yields jumped above 1% for the first time since March.

“We’re just seeing a bit of a corrective move after gold bottomed out from the overall sell-off on Wednesday” as markets consider the economic and asset impact of further stimulus, said DailyFX currency strategist Ilya Spivak.

Many investors view non-yielding bullion as a hedge against inflation and currency debasement that they fear could result from large stimulus measures.