Tuesday saw a small increase in gold prices as the dollar fell from two-month highs. However, concerns about rising U.S. interest rates continued to cloud the picture for the metal markets.

Spot gold nudged up by 0.1% to $1,896.39 per ounce, meanwhile gold futures advanced by 0.1% to $1,924.90 per ounce.

After falling previously to the lowest level in 5 months, the yellow metal started to show some signs of recovery. Spot prices failed to breach above the closely-watched $2,000 per ounce threshold as well.

The prognosis for the yellow metal was mostly dimmed by a rise in U.S. Treasury yields, despite some reprieve for gold on Tuesday.

As markets prepared for potentially higher U.S. interest rates for a longer period of time, 10-year yields soared to a 20-year peak this week.

Jerome Powell, the chairman of the Federal Reserve, will speak at the Jackson Hole Symposium on Friday, which is the main focus of this week. A hawkish stance from the central bank may be encouraged by persistently high inflation and a tight job market, which is why the Fed Chair is anticipated to give additional hints about the direction of monetary policy.