Gold prices edged lower on Tuesday, pulled down by a rise in US Treasury yields, although a softer dollar capped losses and kept bullion near a seven-week peak scaled the previous session.

Spot gold fell 0.2 % to $1,766.65 per ounce by 0945 GMT, after hitting $1,789.77 on Monday, its highest since Feb. 25.

US gold futures for June delivery fell 0.16 % to $1,767.70 per ounce.

"The US Treasury yield is up again and that is weighing on gold. It is compensating for the positive effect of the weaker US dollar," Quantitative Commodity Research analyst Peter Fertig said.

Benchmark 10-year US Treasury yields rose above 1.6% after hitting a five-week low last week, increasing the opportunity cost of holding non-yielding bullion.

Gold, also considered a hedge against inflation, has shed over 6% this year as the higher yields have dulled the appeal of the non-yielding commodity. Bullion rose 25% last year.

A weaker dollar has offered some support for gold. The dollar index hit a nearly seven-week low against its rivals, making gold less expensive for holders of other currencies.

Gold gained 1.9% last week, the most since mid-December, but its failure to break resistance at $1,785, may drive it back to a range of $1,744 to $1,758 per ounce, Reuters technical analyst Wang Tao said.

Global shares edged further back from record highs on Tuesday as lofty sovereign bond yields and rising global COVID-19 cases made investors question high equity valuations.

Silver gained 0.05 % to $25.82 per ounce, palladium dropped 1% to $2,784.11 and platinum fell 0.49 %, to $1,200.32.