Gold prices edged higher on Tuesday, extending gains for the fourth straight day and hit a 2-month high, as the 10-year US Treasury bonds fell, following Federal Reserve official's statements.

Gold prices rose more than 0.1% to the highest since September 7 at $1,827.16 an ounce, after opening at $1,825.24, and hit a high of $1,819.15.

Gold closed higher by 0.3% yesterday, in the third straight daily gain, after the US dollar fell against its peers.

The 10-year US Treasury bond yield fell more than 2.2%, near a 6-week low at 1.436%, which lifts demand for gold and reduces the opportunity cost of holding non-yielding bullion.

Chicago Federal Reserve President Charles Evans said on Monday "the issues leading to high inflation seem more persistent than many thought they would be a few months ago, but it looks like we are in for a low rate environment for some time to come."

Gold stocks at the SPDR ETF remained unchanged yesterday, with the total at the lowest level since April 2, 2020 of 975.41 metric tonnes.

USD/JPY fell in Asian trade away from November 2017 highs following earlier data from Japan and ahead of US data, including Fed Chair Jerome Powell's speech.

As of 05:54 GMT, USD/JPY fell 0.41% to 112.76, with an intraday high at 113.29, and the lowest since October 11 at 112.72.

From Japan, the current account index is expected to show a surplus of 0.76 trillion  yen, compared to 0.88 trillion yen in August, and missing estimates of 0.85 trillion.

Japan's average income rose 0.2% y/y in September, slowing down from 0.6%, while Bank of Japan's bank lending index rose 0.9%, accelerating from 0.6% in September.

Japan's current conditions index rose to 55.5 from 42.1 in September, while beating estimates of 48.6. 

From the US, producer prices are expected up 0.6% in October, while core prices are expected up 0.5%, compared to a 0.2% increase in September.

Federal Reserve Chair Jerome Powell is due to deliver opening remarks at an online conference on diversity and inclusion in economics and central banking, jointly hosted by the Federal Reserve Board, Bank of Canada, Bank of England, and European Central Bank.

Gold prices rose on Monday, as the US dollar fell against most of its rivals on Monday, despite Congress' approval of a new infrastructure spending package.

The US House of Representatives today passed more than $1 trillion infrastructure spending package, to boost the economy's recovery from the pandemic.

The US Federal Reserve decided last week to keep the interest rate between 0.25% and 0%, but announced the start of reducing its $15 billion asset purchases.

The dollar index fell against a basket of major currencies by 0.3% to 94.07 points as of 18:06 GMT, after hitting a high of 94.3 points and a low of 94.1 points.

Gold spot prices rose 0.5% to $1,825.4 an ounce as of 18:09 GMT, with a day high at $1,828.2 , and a low at $1,813.8

The US dollar fell against most of its rivals on Monday, despite Congress' approval of a new infrastructure spending package.

The US House of Representatives today passed more than $1 trillion infrastructure spending package, to boost the economy's recovery from the pandemic.

The US Federal Reserve decided last week to keep the interest rate between 0.25% and 0%, but announced the start of reducing its $15 billion asset purchases.

The US Department of Labor reported last week that the economy has added 531,000 new jobs in October, beating forecasts of 490,000, and the unemployment rate fell to 4.6%.

The dollar index fell against a basket of major currencies by 0.3% to 94.07 points as of 18:06 GMT, after hitting a high of 94.3 points and a low of 94.1 points.