Gold prices edged higher on Tuesday as US Treasury yields eased, although expectations of higher interest rates limited gains.

Spot gold gained 0.3% at $4,357.31 per ounce, as of 0052 GMT. US gold futures for December delivery were up 0.3% at $4,395.00.

The benchmark US 10-year yield slipped for a second consecutive session.

Bullion is traditionally viewed as a hedge against inflation and geopolitical risks, but its appeal tends to wane in a high-interest-rate environment as investors favor yield-bearing assets.

The US central bank raised its policy rate by a quarter of a percentage point last week and flagged more hikes in the coming months.

The Federal Reserve will likely need to hike rates further to lower inflation resulting from strong demand as well as a commodity price shock that has moved beyond oil, St. Louis Fed President Alberto Musalem said, adding that it would be better for the US central bank to act sooner than wait.

On the geopolitical front, Houthi fighters pushed to seize strategic heights in Yemen on Monday to cut off the Red Sea coast from remaining areas held by Saudi-backed forces, after a report that President Donald Trump had called off US strikes on the group at the last minute.

Meanwhile, Trump will attend the United Nations General Assembly this week, ahead of a meeting with Chinese President Xi Jinping on Thursday.

Among other metals, spot silver rose 0.7% to $66.48 per ounce, platinum gained 0.8% to $1,811.28 and palladium added 0.7% at $1,309.78.

1400 EU Consumer Confid. Flash Sep