Gold prices steady on lower dollar

Gold prices held steady on Tuesday, buoyed by a slight pullback in the dollar as investors look forward to US inflation data due later this week for more clarity on interest rate cut timings, reports Reuters.

Spot gold was flat at $2,349.78 per ounce by 10:16 a.m. ET (1416 GMT), after rising 1 per cent on Monday. US gold futures were up 0.7 per cent at $2,350.20.

"The dollar index is down and we are seeing the yield curve rates drop a little bit. Gold is coming off a correction and is hovering around resistance levels and now it's bouncing again," said Bart Melek, head of commodity strategies at TD Securities.

"We continue to be fairly optimistic on gold. I still think that ambiguity of Federal Reserve monetary policy may very well keep gold from taking off and moves be very much data dependent going forward."

The dollar slipped 0.1 per cent to a more than one-week low, making gold less expensive for other currency holders.