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.
Spot gold rose 0.8pc to $1,896.74 per ounce by 1:42 p.m. EDT (1742 GMT), having earlier hit its highest since Jan. 8 at $1,898.40. U.S. gold futures settled up 0.7pc at $1,898.
The dollar was down 0.2pc. U.S Treasury yields fell to the lowest in nearly two weeks, reducing the opportunity cost of holding non-interest paying bullion.
Spot gold was 0.9pc higher at $1,884.46 by 12:17 p.m. EDT (1617 GMT), having earlier hit its highest since Jan. 8 at $1,889.75. U.S. gold futures gained 0.9pc to $1,885.50.
Spot gold may test a resistance at $1,847 per ounce, a break above which could lead to a gain to $1,876, according to Reuters technical analyst Wang Tao.
Spot gold rose 0.3pc to $1,784.23 per ounce by 1:50 p.m. EDT (1750 GMT), after falling about 0.8pc on Tuesday. U.S. gold futures settled up 0.5pc at $1,784.30.
More than 153.02 million people have been reported to be infected by the novel coronavirus globally and 3,344,235? have died, according to a Reuters tally.