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Update: Gold Trading Higher, Finds Support at $4,000 Even as Dollar and Yields Rise

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(Updates prices in the second and final paragraphs.)

Gold traded higher midafternoon Tuesday, rising for a second-straight session after finding support at the $4,000 mark despite a stronger US dollar and higher Treasury yields.

Gold for August delivery was last seen up $58.30, or 1.5%, to $4,074.20 per ounce.

The price of the precious metal has steadied at close to the $4,000 mark despite a strengthening dollar and high oil prices that are raising inflation and heightening fears central banks will need to raise interest rates, bearish for gold since it pays no interest.

"Gold has pushed back above the USD 4,000 level it spent Monday testing from below, trading around USD 4,046 in Asian hours after ending Monday down 0.2%. Bullion is holding that line despite a firmer dollar and higher yields, as traders weigh Middle East inflation risk against mediation headlines," Saxo Bank wrote.

The dollar rose, with the ICE dollar index last seen up 0.16 points to 101.11. Treasury yields also rose, with the yield on the US two-year note up 4.9 basis points to 4.264%, while the 10-year note was paying 4.633%, up 3.6 points.

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