Gold prices inched higher on Tuesday as risk sentiment weakened in equity markets amid concerns about inflation and interest-rate increases.
Spot gold edged up 0.3 percent to $1,847.15 per ounce, while U.S. gold futures were up 0.3 percent at $1,849.30.
A sell-off in the U.S. bond market overnight fueled anxiety about a possible economic slowdown.
Bond yields remain supported after Australia's central bank surprised markets by lifting the official cash rate by a bigger-than-expected 50 bps.
Investors looked ahead to the monetary policy announcement by the European Central Bank (ECB) on Thursday, with the central bank expected to confirm an end to bond buying.
Economists at Barclays said that a series of rate hikes by ECB in the coming months will ultimately contribute to an economic recession.
Underlining investor concerns about slowing economic growth, data showed earlier in the day that German factory orders fell for a third month in a row in April, driven by weakened demand and heightened uncertainty due to the Russian-Ukraine conflict.
Orders fell by 2.7 percent month-on-month in seasonally adjusted terms, after an upwardly revised decline of 4.2 percent in March.
