Gold prices steadied on Tuesday, after rallying to a five-month peak in the previous session, as concerns over broadening inflationary risks kept bullion's safe-haven appeal intact in the face of a stronger US dollar and elevated bond yields.
Spot gold was flat at $1,862.81 per ounce, as of 0140 GMT. US gold futures were also flat at $1,866.80.
Richmond Federal Reserve President Thomas Barkin said on Monday the US Fed will not hesitate to raise interest rates if it concludes high inflation threatens to persist, but that central bank should wait to gauge if inflation and labor shortages prove to be more long-lasting.
Rate hikes tend to weigh on gold as higher interest rates raise the non-yielding metal's opportunity cost.
Bank of England Governor Andrew Bailey said he was very uneasy about the inflation outlook and that his vote to keep interest rates on hold earlier this month, which shocked financial markets, had been a very close call.
Tightening monetary policy now to rein in inflation could choke off the euro zone's recovery, European Central Bank President Christine Lagarde said on Monday, pushing back on calls and market bets for tighter policy.
Pressuring bullion, the dollar index held close to a 16-month high and benchmark US 10-year Treasury yields were near a three-week peak.
A stronger dollar makes gold more expensive for buyers holding other currencies, while higher yields increase the metal's opportunity cost.
Speculators raised their net long gold futures and options positions to 146,319 in the week ended Nov. 9, the US Commodity Futures Trading Commission (CFTC) said on Monday.
Spot silver was steady at $25.04 per ounce. Platinum fell 0.1% to $1,085.54 and palladium dropped 0.6% to $2,142.19.