WASHINGTON (dpa-AFX) - Gold prices held steady near multi-month highs on Tuesday, with a weaker dollar offering some support.
Spot gold edged up 0.2 percent to $1,884.09 per ounce, while U.S. gold futures were little changed at $1,884.55.
The dollar index eased and Treasury yields were stable following a retreat overnight after comments from a series of Fed officials helped ease fears about inflation.
James Bullard, president of the St. Louis Federal Reserve, told Yahoo Finance in an exclusive interview that policymakers should not be too eager to pull back support yet as vaccinations bring the economy 'closer and closer' to pre-pandemic form.
Other Fed officials Raphael Bostic and Lael Brainard also talked down inflation risks and described the recent demand-supply disruptions as transitory.
The dovish Fed comments lifted risk sentiment and offered support to stock markets in Asia and Europe.
European markets traded near record highs after survey data from the ifo Institute showed Germany's business sentiment improved more than expected in May.
The business confidence index rose to 99.2 in May from 96.6 in the previous month. The reading was also above economists' forecast of 98.2.
Trading later in the day may be impacted by reaction to U.S. reports on home prices, new home sales and consumer confidence.
U.S. personal consumption and inflation figures, due later this week, will shed more light on whether the Fed is going to see inflation as transitory.
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