All three major U.S. stock indexes gained some ground and the S&P 500 and the Dow were last in positive territory, with economically-sensitive small caps and transports lagging.
Spot gold was up 0.8pc at $1,742.78 an ounce by 11:03 a.m. EDT (1503 GMT) after hitting its highest level since March 25 at $1,744.30. U.S. gold futures gained 1pc to $1,745.20.
Gold is seen as a hedge against rising inflation, but firmer Treasury yields, which translate into a higher opportunity cost for holding bullion, have challenged that status.
The International Monetary Fund will raise its forecast for global economic growth in 2021 and 2022 after last year's 3.5% contraction, IMF Managing Director Kristalina Georgieva said on Tuesday.
The stronger dollar and rising yields, along with expectations of a strong economic recovery, sapped demand for safe-haven bullion and pushed gold prices lower.