By Gina Lee

Investing.com – Gold was up on Tuesday morning in Asia, thanks to declines in both the and U.S. bond yields that provided some support to the yellow metal.

By 12:40 PM ET (04:40 GMT), they were up 0.5% to $1,775.75

Although the US dollar moves in inverse proportion to gold normally, it was lower Monday. The benchmark U.S. 10-year Treasury yields on 10 year were also in a declining trend.

U.S. factory data released on Monday showed that industrial production contracted 1.3% and grew a smaller-than-expected 4.6% , in September. A global shortage of semiconductors has led to a decline in vehicle production, another sign that COVID-19 is causing economic difficulties.

Asia Pacific releases the early in the day.

Meanwhile, Monday’s anticipated stronger demand as COVID-19 outbreaks are brought under control. It also stated that current supply restrictions could restrict sales and increase costs.

Other precious metals saw silver rise 0.5% while platinum rose 0.4%, and palladium rose 0.3%.

Russian palladium producer Nornickel, the world’s largest, said on Monday that it has begun a contest for scientists to find new ways to use the metal. Palladium has been hit by a chip shortage in the auto industry, Nornickel’s top consumer sector.