Gold Steady Amid Strong Dollar

Gold prices held steady early on Tuesday after dropping below $1,300 per ounce in the session earlier, while the dollar was firm on strong U.S. Treasury yields.

Spot gold was flat at $1,293.60 per ounce. The precious metal declined 0.8 percent in the session earlier.

U.S. gold futures for December delivery dropped to $1,296 an ounce. The dollar held gains versus the yen and the euro on Tuesday, buoyed by an increase in Treasury yields following a report that U.S. President Donald Trump preferred a policy hawk as the next head of the Federal Reserve. He is set to meet with Fed Chair Janet Yellen on Thursday as part of his search for a new candidate for her position, according to a source familiar with the matter.

Among other metals, palladium previously tumbled 1.6 percent at $972.10 per ounce after hitting its highest since February 2001 at $1,010.50.

Some investors had been wary when the metal, mostly used for auto catalysts to clean pollution from exhaust fumes, broke above $1,000 on Sept. 6, as a result of concern regarding weak global auto sales.

However, these concerns have been put aside after the world's largest auto market China recently posted sales growth of 5.7 percent in September.

Prime News are provided by InstaForex