Gold Subdued In Lackluster Trade

Gold prices were subdued on Tuesday, the dollar extended declines and Treasury yields held steady as fears of a full-blown banking crisis ebbed.

Spot gold slipped 0.2 percent to $1,952.38 per ounce, while U.S. gold futures were marginally lower at $1,970.90.

Traders are seen booking profits after prices recently reached the $2,000 per ounce level. However, a weaker dollar and growing recession fears kept losses in check.

Developments in the banking sector remain in focus, with the U.S. Senate Banking Committee due to hold a hearing on the recent banking sector turmoil later in the day.

The U.S. economic calendar remains light, with a report on consumer confidence likely to be in focus later in the day.

European Central Bank's top supervisor Andrea Enria said earlier today he was concerned by a sudden fell in Deutsche Bank shares late last week, which showed investors could be spooked by moves in the relatively small and illiquid market for credit default swaps.

Separately, Bank of England governor Andrew Bailey has dismissed a recent slide in European bank shares as markets "testing out" lenders rather than a sign of weakness in the financial services sector.

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