Gold prices rebounded on Tuesday as the dollar declined and Treasury yields dropped amid market optimism about the US debt ceiling arrangement. Spot gold surged 0.9% to $1,960.55 an ounce, while US gold futures increased 0.8% to $1,959.80. The lower dollar made bullion more affordable to non-US currency holders, while the 10-year Treasury yields hit a one-week low. Basic market optimism, along with traders squaring off end-of-month positions, further supported prices. However, gold could struggle until a new impetus comes along, according to Kitco Metals’ Senior Analyst, Jim Wyckoff.