Gold prices inched up on Tuesday, as a decline in the dollar and U.S. bond yields provided some support to the precious metal.

Spot gold rose 0.2% to $1,767.91 per ounce by 0126 GMT. U.S. gold futures rose 0.2% to $1,769.60.

Supporting gold by making it cheaper for buyers in other currencies, the dollar fell 0.1% and languished near the lows of its recent range.

U.S. benchmark 10-year Treasury yields also weakened, reducing non-yielding bullion's opportunity cost.

Data on Friday showed U.S. factory production dropped the most in seven months in September, as an ongoing global semiconductor shortage depressed motor vehicle output, further evidence that supply constraints were hampering economic growth.

Australia's central bank said the outbreak of the delta Covid-19 variant had interrupted the country's economic recovery.

While a regular Bank of Canada survey of companies on Monday anticipated stronger demand as Covid-19 fades, they also said current supply constraints could limit sales and put upward pressure on costs.

Gold is often considered an inflation hedge, though reduced stimulus and interest rate hikes push government bond yields up, raising the opportunity cost of holding non-yielding bullion.

Spot silver rose 0.5% to $23.29 an ounce, while platinum gained 0.4% to $1,039.40 and palladium rose 0.3% to $2,020.80.

Russia's Nornickel, the world's largest palladium producer, said on Monday it had begun a contest for scientists to find new ways to use the metal hit by a chip shortage in the auto industry, its top consumer sector.