Gold prices edged higher in early Asian trade on Tuesday, extending gains from the overnight session that were driven by a weaker US dollar and a decline in Treasury yields. The precious metal鈥檚 direction remains heavily tied to diplomatic efforts to resolve the Middle East crisis, which has caused significant volatility in gold prices throughout the conflict.

Konstantinos Chrysikos, an analyst at Kudo.com, noted that progress toward a resolution could lower bond yields and benefit gold, while any setbacks might boost demand for the US dollar and weigh on the metal. He added that markets still anticipate a rate hike at the Federal Reserve鈥檚 next meeting, but the probability of holding rates steady is rising, a shift that could support gold prices.

Upcoming US employment data may influence whether more dovish expectations gain traction among investors. Spot gold rose 0.6% to $4,276.31 per ounce as of the latest trading session.