FX.co ★ Gold Holds Steady As Dollar Weakens On Fed Remarks

Gold prices held steady near a three-month high on Tuesday against the backdrop of a weakening dollar and falling Treasury yields.

Spot gold edged up 0.2 percent to $1,775.44 per ounce, while U.S. gold futures were up 0.1 percent at $1,779.05.

The dollar index touched a three-month low and bond yields slipped after Federal Reserve Vice Chair Lael Brainard on Monday said that the U.S. central bank could soon slow the pace of its interest-rate rises.

"I think it will probably be appropriate soon to move to a slower pace of rate increases," she told Bloomberg News in a live interview.

Fed Governor Christopher Waller also indicated on Sunday that the Fed may cut the size of rate increases but that should not be seen as a "softening" of its battle against inflation.

In economic releases, investors await U.S. reports on producer prices, retail sales, import and export prices, industrial production, housing starts and existing home sales this week for additional clues about the strength of the economy and the outlook for interest rates.

Earnings from major retailers, including Walmart and Target, may give investors hints about the outlook for the holiday shopping season and the remainder of the year.