Gold futures on Tuesday rose sharply, with prices trading back above 1,700 an ounce, supported by a retreat in the dollar and a pullback in yields for government debt from oneyear highs.

Gold for April delivery on Comex gained 36.40, or 2.2, to reach 1,714.20 an ounce, after tumbling 1.2 to hit the lowest for the mostactive contract since April 3 on Monday, FactSet data show.

On Tuesday, gold was staging a rebound as the 10year Treasury note yield added 5.5 basis points to 1.539, after hovering around 1.60 on Monday. On top of that, the dollar was shedding 0.3 after trading near its highest level since Nov. 24 on a day ago, as measured by the ICE U.S. Dollar Index.

Lower bond yields and a weakening dollar can make commodities priced in the U.S. currency more attractive to buyers, compared against other assets.

Bullish bullion dealers say that gold may be finding some support at around 1,680 an ounce, as investors continue to seek out longterm inflation hedges, with expectations growing that fiscal spending and successful COVID vaccination rollouts will lead to a powerful rebound in the economy and inflation. Gold is viewed as a hedge against inflation.

The House is expected this week to provide final approval of a 1.9 trillion package of COVID relief spending, giving President Joe Biden an early political victory and stoking expectations for a surge in economic growth later in 2021.

Gold finds buyers near 1,680 an ounce, but the appetite for inflationhedges remain…