Gold prices gave up early gains on Wednesday as the U.S. dollar firmed, despite support for the metal from falling Treasury yields and sagging global stocks on fears of the impact on the global economy of a resurgence in coronavirus cases.

Spot gold was up 0.1% at $1,778.19 per ounce at 0902 GMT, after gaining as much as 0.6% early in the session. U.S. gold futures were mostly unchanged at $1,778.90 per ounce.

"This week we have seen some dollar weakness, but that has come to a halt and we are seeing some recovery there. That's why gold is not making some more gains," said ABN Amro analyst Georgette Boele.

"Don't see much reason to buy gold at these levels as if we get an uptick in the dollar and rally in yields, gold will move lower again."

The U.S. dollar firmed on Wednesday, rising from a seven-week low hit overnight, making gold expensive for holders of other currencies. 

Benchmark 10-year U.S. Treasury yields dropped below 1.6%, reducing the opportunity cost of holding non-yielding bullion. 

MSCI's index of global shares fell 0.3%.

Market participants now await the European Central Bank meeting on Thursday for further clarity about stimulus plans for the bloc. A U.S. Federal Reserve policy meeting is due next week.

"Gold should remain supported by continued physical interest out of both Shanghai and India, while exchange traded fund (ETF)flows are beginning to see recent outflows dry up," MKS PAMP Group said in a note.

"From a positioning perspective, recent short builds are holding for the time being, however we expect these to be tested through $1,800 to drive price action higher."

Among other precious metals, silver was up 0.1% at $25.89 per ounce. Palladium gained 0.4% to $2,778.93, while platinum was flat at $1,187.

(Reporting by Nallur Sethuraman in Bengaluru Editing by Peter Graff) ((Sethuraman.NR@thomsonreuters.com; (+91 8061822737); Reuters Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))