* U.S. 10-year Treasury yield firms above 1.6% * U.S. manufacturing activity picked up last month * Asian shares tick up as U.S. data bolsters recovery hopes (Adds details and updates prices) June 2 (Reuters) - Gold prices dipped on Wednesday, as elevated Treasury yields and an uptick in risk appetite weighed on the safe-haven metal, while investors cautiously awaited U.S. jobs data for cues on economic recovery and near-term Federal Reserve policy action. Spot gold was down 0.3% at $1,894.46 per ounce, as of 0645 GMT, after hitting its highest since Jan. 8 at $1,916.40 on Tuesday. U.S. gold futures eased 0.3% to $1,899.60 per ounce. “We saw some decent profit-taking as rising yields have sort of dulled the appeal for gold, primarily triggered after the U.S. manufacturing survey data topped estimates,” Stephen Innes, managing partner at SPI Asset Management, said. “There are some jitters, especially ahead of non-farm payroll. However, all inflation signals remain favorable for gold over the long term.” The U.S. 10-year Treasury yield held firm above 1.6% after hitting a more than one-week high, increasing the opportunity cost of holding non-interest-bearing gold. Data showed that U.S. manufacturing activity had picked up in May, lifting risk sentiment in wider financial markets and reducing demand for safe-haven assets such as gold. Focus this week will also be on U.S. payrolls data due on Friday that can shed more light on global economic recovery. “As for the precious metals’ outlook in the short-term, it depends on how global inflation data develops and how central banks, mostly the Fed, respond to it,” IG Market analyst Kyle Rodda said. Gold, often used as a hedge against inflation, registered in May its best month in 10, driven by weaker U.S. dollar and recent data showing a rise in prices in the United States and Britain. Australia’s Perth Mint posted a 10% drop in May gold coin sales. Elsewhere, palladium fell 0.5% to $2,844.94 per ounce, silver dropped 0.5% to $27.76, and platinum slipped 0.7% to $1,183.72. (Reporting by Brijesh Patel in Bengaluru, Editing by Sherry Jacob-Phillips) Our Standards: The Thomson Reuters Trust Principles.