* Spot gold held ground at $1,818.87 an ounce, at 0022 GMT. US gold futures edged up 0.1% to $1,818.50.
* Treasury yields rose along the curve on Tuesday, lifting the short end to new pandemic highs on rate hike expectations.
* The focus is now on the US Federal Reserve’s Jan. 25-26 meeting after policymakers signaled they would start raising interest rates in March to tame inflation.
* Gold is considered an inflation hedge, but the metal is very sensitive to rising US interest rates, which increases the opportunity cost of holding non-interest bearing bullion.
* The US dollar weakened slightly and hovered near its lowest level in two months, making greenback-priced gold more attractive to overseas buyers.
* The Bank of Japan is expected to revise its inflation forecast upwards on Tuesday and acknowledge emerging signs of a shift in the country’s deflationary mindset, as stubbornly high global commodity costs prompt more companies to raise prices.
* Australian consumer confidence took a hit last week as an explosion of coronavirus cases triggered self-imposed lockdowns, crushing spending and gouging holes in supply chains.
* The global labor market will take longer to recover than previously thought, with unemployment expected to remain above pre-COVID-19 levels until at least 2023 due to uncertainty over evolution and duration of the pandemic, the International Labor Organization said in a report on Monday. .
* Spot silver rose 0.1% to $23.02 an ounce, platinum rose 0.3% to $974.43 and palladium was flat at $1,874.66.