Gold edged up on Tuesday as the dollar weakened, with gains capped by higher U.S. Treasury yields as investors focus on the ECB central bankers' forum in Portugal.

Spot gold rose 0.2% to $1,826.09 per ounce by 0935 GMT. U.S. gold futures firmed 0.1% to $1,827.30. A weaker dollar made gold attractive for overseas buyers, but higher benchmark U.S. 10-year Treasury yields reduced appeal for the zero-yield bullion.

Apart from the dollar's retreat, gold is also taking cues from gains in the wider commodity complex to some extent, said Quantitative Commodity Research analyst Peter Fertig. Prospects of interest rate hikes, especially by the U.S. Federal Reserve, which tend to raise bond yields and increase the opportunity cost of holding gold kept the metal's gains in check. Fed Chair Jerome Powell was among a host of central bankers attending the annual forum in Sintra, Portugal. With the ECB set to raise rates for the first time in a decade next month, President Christine Lagarde said the central bank will move gradually but with the option to act decisively on any deterioration in medium-term inflation.

"Therefore, gold is in competition with other investments like money market instruments and if interest rates are rising because of the higher inflation rates than the attractiveness to investing in goal is reduced," Fertig added. Global shares also moved into positive territory while oil prices firmed on hopes of a revival in demand from China.

"Gold remains a traders' market – which is vulnerable to false breaks and quick turnarounds on little news. This means range-trading strategies are preferred until we see a catalyst, which instils some life back into markets," City Index senior market analyst Matt Simpson said.

Spot silver rose 0.8% to $21.30 per ounce, platinum climbed 1% to $917.47, and palladium gained 1.3% to $1,894.34. (Reporting by Arundhati Sarkar and Bharat Govind Gautam in Bengaluru; Editing by Vinay Dwivedi)