Gold prices recovered some lost ground on Wednesday on short-covering after prices fell to the lowest level this year in the previous session on surging US bond yields and a stronger dollar. Spot gold rose 0.3 percent to $1,294.30 per ounce at 0639 GMT, after shedding 1.7 percent and marking the lowest this year at $1,288.31 in the previous session.
This was also the lowest price level for the yellow metal since Dec. 28.
US gold futures for June delivery were up 0.3 percent at $1,293.60 per ounce.
"Rising US bond yields and a stronger dollar were factors behind gold's decline below the $1,300 level. The slight pick up suggests that there might have been some opportunistic buying on the part of investors," said John Sharma, an economist with National Australia Bank.
While global political tensions continued to provide safe-haven support to the metal, investors said the main price drivers would likely remain a stronger dollar and rising US interest rates.
"There are lot of geopolitical risks but people are just used to it. Therefore it has not become a big driver for gold," said Helen Lau, analyst at Argonaut Securities.
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