LONDON, June 28 (Reuters): Gold prices steadied on Tuesday, despite an uptick in the dollar and US Treasury yields, as investors awaited policy cues from the ECB central bankers' forum underway in Portugal.
Spot gold was little changed at $1,822.19 per ounce. US gold futures ticked lower 0.1 per cent at $1,822.8.
"Gold seems to be acting in a manner of its own, brushing aside movements across other parts of the market and just consolidating around the $1,830 mark," OANDA analyst Craig Erlam said, adding, rising yields could ultimately push gold lower.
Traders are looking out for any indications about the outlook for inflation and then comments from the Fed, the ECB, on how they're going to approach this, Erlam added.
President Christine Lagarde told the ECB conference on Tuesday that euro zone inflation was undesirably high but with the outlook for both growth and inflation uncertain, the ECB would move gradually with the option to act decisively on any deterioration in medium-term inflation.
Gold seemed to hold its ground despite a reversal upward in the dollar , which usually dims bullion's appeal for overseas buyers, and a climb in US 10-year Treasury yields.
"Gold remains a traders' market - vulnerable to false breaks and quick turnarounds on little news," City Index senior market analyst Matt Simpson said.
Bullion has found some support from worries about a recession, analysts said, despite the headwinds from elevated rates, especially from the US Federal Reserve, which increase the opportunity cost of holding the non-yielding asset.
