Shafaq News / Gold steadied on Tuesday as a decline in Treasury yields buoyed demand, countering an unrelenting dollar rally that earlier dragged bullion prices to a nine-month low.

Spot gold was flat at $1,733.59 per ounce by 0740 GMT, after hitting its lowest since Sept. 30 of $1,722.36 earlier in the session.

U.S. gold futures firmed 0.1% to $1,733.60.

Benchmark U.S. 10-year Treasury yields dropped for a second consecutive session, supporting the appeal of zero-yield gold.

However, if the euro falls through parity against the dollar, gold could drop toward $1,700, Halley said.

The dollar climbed to a fresh 20-year peak against a basket of major rivals on Tuesday, making greenback-priced gold more expensive for buyers holding other currencies.

Investors will likely keep a close eye on U.S. consumer price index data, a key measure of inflation, that is due Wednesday, and is expected to show prices rose 8.8% in June from a year earlier.

The data could prompt the U.S. Federal Reserve to solidify its aggressive stance on monetary policy.

(Reuters)