Gold steadies as dollar strength balances Fed rate-hike expectations

Gold prices held steady on Tuesday, showing little movement as a stronger U.S. dollar countered support from reduced expectations of a Federal Reserve interest rate hike this month.

The firmness in the dollar weighed on gold, as the precious metal typically becomes less attractive to investors holding other currencies when the dollar strengthens.

Despite the offsetting factors, gold found some backing from easing bets on a rate increase by the Fed, which could lower the opportunity cost of holding non-yielding assets like bullion.