ROTTERDAM/LONDON: Gold prices ticked up on Monday as US Treasury yields backed off recent highs, countering pressure from a resilient dollar, as investors awaited further policy cues from the Federal Reserve’s policy meeting this week.

Spot gold rose 0.1% to $1,727.80 per ounce by 10:32 a.m. EDT (1432 GMT). US gold futures rose 0.5% to $1,727.90 per ounce.

“Yields are calm this morning and the recent dip in gold is viewed as a buying opportunity by most,” said David Meger, director of metals trading at High Ridge Futures.

The big question will be whether rising yields, on the back of optimism over an economic recovery, will pressure gold, or if growth stalls a bit or inflation picks up, which should support gold, Meger added.

Benchmark US Treasury yields eased off more than a one year peak, restoring some appeal for gold, which pays no interest.

“Whenever yields peak, that will be the bottom for gold,” said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

“They (yields) still have room to extend higher but at the end of the day, yields are not going to go up forever, so there’s going to be a turning point ... the higher we go, the closer we get to the turning point,” he added.

Also aiding gold’s rise was the signing of a long-awaited $1.9 trillion US relief bill into law, which spurred some fears over inflation, since bullion is considered a hedge against rising prices.

Investors now await a two-day Fed meeting that starts on Tuesday, with the focus on a recent spike in bond yields, fears about rising inflation and the economic outlook.

The Bank of England and Bank of Japan also have meetings on Thursday and Friday, respectively.

In other metals trading, silver gained 0.6% to $26.08 an ounce. Palladium edged 1.2% higher to $2,400.67 and platinum fell 0.1%, to $1,203.67.