Gold is steady in early Asian trade. Broadly higher yields increase the opportunity cost of holding non-interest-bearing assets like gold, says Swissquote's Ipek Ozkardeskaya in a note.

While the $4,000 an ounce support level for the yellow metal appears intact, there is “little conviction that further stress across financial markets will drive significant flows into the precious metal,” she says. Some central banks could be forced to sell part of their gold reserves to stabilize their currencies as oil prices start to rise, which prevents gold from acting like a safe-haven asset.

Still, any price pullback should be viewed as an opportunity for long-term investors, she adds. Spot gold is flat at $4,051.67 an ounce.