Gold stable

Bengaluru: Gold prices were steady early on Tuesday, after dipping below $1,300 an ounce in the previous session, as the dollar held firm on strong U.S. Treasury yields.

Spot gold was unchanged at $1,293.60 an ounce at 0055 GMT. It shed 0.8 percent in the previous session. U.S. gold futures for December delivery fell 0.5 percent to $1,296 per ounce. The dollar held gains against the yen and euro on Tuesday, supported by a rise in Treasury yields following a report that U.S. President Trump was favouring a policy hawk as the next head of the Federal Reserve.

Trump will meet with Fed Chair Janet Yellen on Thursday as part of his search for a new candidate for her position, a source familiar with the planned meeting said.

The United States and Japan made tentative progress on some long-standing trade irritants on Monday, during economic talks at which leaders emphasized cooperation at a time when North Korea is building up its nuclear capabilities.