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Gold steadied on Tuesday as the U.S.

dollar stabilized after a slide in the previous session that

drove greenback-priced bullion to its highest level in two

weeks.

FUNDAMENTALS

* Spot gold held its ground at $1,852.84 per ounce,

as of 0048 GMT, after scaling to its highest since May 9 at

$1,865.29 on Monday. U.S. gold futures gained 0.3% to

$1,852.40.

* The dollar steadied after dropping to a one-month

low in the previous session. A weaker dollar makes bullion more

attractive for overseas buyers.

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* Benchmark U.S. 10-year Treasury yields eased, buoying

demand for zero-yield gold.

* Kansas City Federal Reserve Bank President Esther George

said on Monday she expects the U.S. central bank to lift its

target interest rate to about 2% by August, with further action

dependent on how both supply and demand are affecting inflation.

* Bullion, seen as a safe store of value during times of

economic crises, tends to become less attractive to investors

when U.S. interest rates are raised because it yields nothing.

* Asian shares got off to a sluggish start on Tuesday after

a rally on Wall Street was soured by an early slide in U.S.

stock futures, while the euro was near one-month highs as odds

narrowed on a July rate rise by the ECB.

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* SPDR Gold Trust , the world’s largest gold-backed

exchange-traded fund, said its holdings rose 0.44% to 1,068.07

tonnes on Monday from 1,063.43 tonnes on Friday.

* Spot silver dipped 0.2% at $21.72 per ounce, and

platinum eased 0.3% to $956.10, while palladium

edged up 0.2% to $1,996.20.

* Russia’s Nornickel on Monday cut its estimate for the

global palladium market deficit in 2022 to 100,000 troy ounces

due to lower demand from the car industry amid the Ukraine

crisis and a slow recovery of the chip market from shortage.

(Reporting by Bharat Govind Gautam in Bengaluru; Editing by

Sherry Jacob-Phillips)