Oct 6 (Reuters) - Gold prices rose on Tuesday, supported by a pause in the US Treasury yield's rally and a weaker dollar, while investors awaited the minutes of the Federal Reserve's September meeting for fresh clues on its monetary policy outlook.
Spot gold rose 0.7% to $4,168.33 per ounce by 02:12 p.m. EDT (1812 GMT). US gold futures for December delivery settled 0.7% higher at $4,187.10.
"We're seeing some safe haven demand (in gold) because of the turmoil in the French bond market and growing concerns about the US Treasury markets," said Jim Wyckoff, a market analyst at American Gold Exchange.
US 10-year Treasury yields edged lower after climbing to a more than two-decade high on Monday, while the dollar eased from a one-year high, making greenback-priced bullion more affordable for holders of other currencies.
Investors remain on edge about rising government debt levels and widening budget deficits across parts of the euro zone, particularly in France, pushing sovereign bond yields higher.
Investors are now looking out for minutes of the September Federal Open Market Committee meeting, due on Wednesday, to gauge the possibility of further interest rate hikes this year.
Markets have pared bets for a Fed rate hike this month after softer-than-expected job growth in September.
Traders now see only a 22% chance of the Fed raising rates this month but are still pricing in an 84% probability of an increase in December, according to CME's FedWatch Tool.
Gold tends to lose its appeal to yield-bearing assets in a high-interest-rate environment.
Meanwhile, oil prices fell as resilient Middle Eastern crude exports and a G7 emergency stockpile release eased supply concerns.
"Despite near-term headwinds, ongoing ETF buying and demand from discretionary investors continues to provide support for gold. We maintain our view that the yellow metal will move above $5,000 per ounce in 2027," analysts at TD Securities said in a note.
Among other metals, silver rose 0.8% to $61.56, while platinum slid 1% to $1,704.85 and palladium was unchanged at $1,172.80.
Reporting by Pablo Sinha in Bengaluru; Editing by Joe Bavier, Alison Williams and Shailesh Kuber
