Platinum rose 3.1% to $1,062.83, while palladium climbed 0.2% to $2,376.57.
Gold jumped on Wednesday after the USA dollar and Treasury yield declined and hope for a large U.S. fiscal stimulus boosted its appeal.
As a result, the euro fell 0.5% to $1.2155, its lowest since December 21, down almost 2% from a high of $1.2349 last week.
Last week, gold prices corrected sharply on cues from the worldwide market where traders increased their short position as seen by the open interest.More news: Walmart to create fintech startup with Ribbit Capital
Crude oil prices fell, hit by renewed concerns about global fuel demand amid tough coronavirus lockdowns across the globe, as well as the stronger dollar.
The Japanese yen weakened 0.20% versus the greenback at 104.16 per dollar, while Sterling was last trading at $1.3522, down 0.30% on the day.
That has also prompted some investors to trim their bearish bets versus the dollar with net short bets on the dollar versus the euro declining to $21 billion, compared with $24 billion two weeks earlier, according to latest positioning data.
Ordinarily, the extra spending plans would force investors to worry about rising inflation and its detrimental effect on the United States dollar in a weak economy, but the currency has been supported in recent weeks thanks to rising USA yields. With U.S, yields shooting higher, it really does two things: "1) it encourages more inflow into the USA buying US rate products and 2) very sharply moving yield levels tend to not be good for high beta EM FX".More news: House Democrats set in motion bid to remove Trump from office
Higher bond yields increase the opportunity cost of holding the non-interest yielding gold.
Investors expect that to usher in huge sums in government borrowing to fund big-spending stimulus plans and have figured that higher USA rates might make United States dollars more attractive. More details will follow in an official announcement on Thursday.
Gold futures on MCX (Multi Commodity Exchange of India) opened slightly higher at Rs 49,320 per 10 grams after closing with marginal gains at Rs 49,300 on Monday at 11.55 pm, post the announcement on impeachment.
Federal Reserve Board Governor Lael Brainard and Vice Chair Richard Clarida are also due to speak on Wednesday and the Fed issues its "Beige Book" of economic indicators at 1900 GMT.More news: Mega Millions jackpot rises to $520 million