Gold prices inched higher on Wednesday, adding to a 2% jump in the previous session after a retreat in US Treasury yields and the dollar lifted the metal's appeal.

FUNDAMENTALS

Spot gold was up 0.1% to $1,716.51 per ounce by 0041 GMT, after hitting its lowest since June 5 at $1,676.10 on Monday. US gold futures eased 0.2% to $1,714.20.

US Treasury yields dropped overnight, pulling back from a recent 13-month high on the benchmark note, as investors bought back bonds in a selloff that market participants have deemed overextended.

Lower yields reduce the opportunity cost of holding the non-interest paying gold.

The dollar on Tuesday slipped from its 3-1/2-month high as US yields stabilized ahead of key inflation data and Treasury auctions this week.

The US House of Representatives voted on Tuesday to advance President Joe Biden's $1.9 trillion COVID-19 relief bill, clearing the way for the measure to be considered on Wednesday, when it is expected to pass.

The world economy is set to rebound this year with 5.6% growth and expand 4.0% next year, the Organisation for Economic Cooperation and Development said in its interim economic outlook.

Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust fell 0.1% to 1,061.98 tonnes on Tuesday from 1,063.43 tonnes a day earlier.

The global platinum market will be roughly balanced this year after a record undersupply of almost a million ounces in 2020, but more deficits loom as demand picks up, the World Platinum Investment Council (WPIC) said.

Silver rose 0.2% to $25.96 an ounce.

Palladium was little changed at $2,296.70. Platinum was steady at $1,169.19.