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Gold prices held near two-month highs on Thursday as a retreat in U.S. Treasury yields and the dollar sparked investor interest, with concerns surrounding inflation and geopolitics lending support.

Spot gold eased 0.2% to $1,836.80 per ounce by 1102 GMT, after scaling its highest since Nov. 22 at $1,843.94. U.S. gold futures fell 0.3% to $1,837.30.

"This morning we are looking at a pause for breath after yesterday's gains. Those gains result from the market finally seeking what we have been expecting for a while, which is using gold as a hedge against inflation," Ricardo Evangelista, senior analyst at ActivTrades said.

Reflecting investor sentiment, holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, jumped 0.5% on Wednesday. [GOL/ETF]

The dollar was lacklustre as U.S. benchmark 10-year yields retreated from two-year highs. [USD/][US/]

Growing geopolitical instability, notably over tensions between Russia and Ukraine, was also supporting gold, Evangelista said.

Oil prices were trading near their highest levels since 2014. [O/R]

The U.S. Federal Reserve will meet next week and is expected to tighten monetary policy faster than thought earlier to tame inflation, a Reuters poll showed.

Elsewhere, platinum rose 2.1% to $1,043.89 and palladium gained 2.1% to $2,044.30, both their highest in two months.

The previous session saw auto-catalysts platinum and palladium rally, which could be related to supply concerns due to the Russia-Ukraine tensions, Commerzbank analysts said in a note.

Potential Western sanctions on Russia, one of the biggest producers of palladium, and an export ban on the metal, which is so vital for the automotive industry, could lead to a severely undersupplied market, Commerzbank said.

Silver rose 0.3% to $24.19 an ounce, also at a two-month high.