The dollar index eased from a three-week high, making gold more affordable for holders of other currencies, while benchmark 10-year yields also moved lower.
U.S. Treasury yields rose, translating into increased opportunity cost of holding non-yielding gold, on reports that President Joe Biden will announce on Friday a $6 trillion budget for 2022.
U.S. benchmark Treasury yields continued their dip, translating into lower opportunity cost of holding bullion, after scaling one-year highs last week.
Prices slipped as much as 2.5pc after scaling their highest since Nov. 9 on Wednesday, as 10-year U.S. Treasury yields jumped above 1pc for the first time since March.