- Silver set for third session of gains
- Dollar index down 0.1%
- Gold down nearly 2% this month
- European stocks lack momentum
June 27 (Reuters) - Gold prices held steady with support from a softer dollar on Tuesday after the metal registered two sessions of gains, though investors remained cautious after recent hawkish comments from U.S. central bank officials.
Spot gold held its ground at $1,923.09 per ounce by 1200 GMT while U.S. gold futures edged down 0.1% to $1,932.90.
The dollar index eased slightly, making dollar-priced bullion more attractive for overseas buyers.
"Gold is seeing slight relief from the easing U.S. dollar today, even as it adheres to the downtrend that's been in place since early May," said Han Tan, chief market analyst at Exinity.
"Spot gold may revisit sub-$1,900 levels in the near term if markets begin to take heed of (Federal Reserve) Chair Powell's hawkish warnings and price in a second 25 bps rate hike by the Fed later this year."
Bullion has shed about 2% this month - set for a second consecutive monthly fall if losses hold - as expectations of higher-for-longer interest rates in the United States have dented the zero-yielding asset's appeal, even though it is seen as a safe investment during economic uncertainty.
Market participants are now looking ahead to Fed Chair Jerome Powell's speech before the European Central Bank Forum in Sintra at 1330 GMT on Wednesday.
Meanwhile, Julius Baer analyst Carsten Menke said that high interest rates are offering other alternatives than gold to safe-haven seekers.
In the broader market, European shares struggled to maintain positive momentum after Asian stocks were boosted by the Chinese government saying it would support the economy, with investors focused on concern over the European and U.S. economic outlook.
Spot silver rose 0.5% to $22.88 an ounce and was on track for a third straight session of gains.
Platinum advanced 0.7% to $930.38 and palladium was up 0.4% to $1,311.04.
Reporting by Arundhati Sarkar and Seher Dareen in Bengaluru Editing by Christina Fincher, David Goodman and Louise Heavens
Source: Reuters