Gold on Tuesday held near three-week lows hit in the previous session in Asia on diminishing demand for safe-haven bullion as equities rallied and the US dollar gained versus the yen. Spot gold was mostly unchanged at $1,255.90 per ounce, as of 0733 GMT. Bullion prices on Monday dropped 0.9 percent to $1,253.66 an ounce, its weakest since April 11.

US gold futures were up 0.1 percent at $1,256.70 an ounce. Asian shares rose to near two-year highs on Tuesday and the dollar hit a one-month high against the yen as US Treasury yields surged. "Gold is just shy of important daily support today in the shape of its 200-day moving average at $1,253. A daily close below here would be a bearish technical development," said Jeffrey Halley, senior market analyst, OANDA. "The fall (on Monday) implies that the safe haven bid that has underpinned gold in recent times is rapidly eroding."

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