Gold prices eased on Tuesday as headwinds from an uptick in U.S. Treasury yields amid prospects of more interest rate hikes offset support from a retreat in the dollar.

Spot gold fell 0.1% to $1,836.12 per ounce by 1006 GMT. U.S. gold futures were flat at $1,839.50.

The dollar, which has actually been the key driver for gold, is significantly softer, but the countervailing force is coming from a much higher U.S. Treasury yield, said Ross Norman, an independent analyst.

The dollar weakened, making bullion more attractive for buyers holding other currencies, but benchmark U.S. 10-year Treasury yields rose. Higher interest rates and bond yields increase the opportunity cost of holding gold, which yields no interest.

Central banks around the world are looking to raise interest rates aggressively to curb stubborn inflation, and earlier in the session, the Reserve Bank of Australia’s governor Philip Lowe signalled more rate increases and said that inflation was expected to reach 7% by end-year.

Also on the radar were U.S. Federal Reserve policymakers’ remarks expected later in the day, and that of two speakers from the Bank of England.

“There are conflicting factors at play that have prevented the metal from making a decisive move in one or the other direction”, Fawad Razaqzada, market analyst at City Index said, adding “the fact it (gold) hasn’t completely broken down means there are other factors supporting.”

Fed Chair Jerome Powell will testify in Washington D.C. later this week.

Meanwhile, European stock markets extended gains, aided by chemical, mining and oil stocks as dip buyers emerged after a bruising sell-off last week on recession fears.