The US dollar gold price hovered around $1,630 an ounce during Tuesday morning's trading in London – in line with where it ended last week – while stocks and commodities were also broadly flat ahead of the latest Federal Reserve policy meeting.
The silver price traded in a tight range just below $29 an ounce – 1.7% up on Monday's low.
Over in India, traditionally the world's biggest gold buying nation, local press report that the rupee gold price set a fresh record in Delhi Tuesday, as the rupee fell against the dollar on international currency markets.
"There has been very light buying from India, but it's really quiet there," says one Singapore-based dealer, adding that there has been a pickup in scrap gold bullion sales from Thailand.
"I guess there's a kind of wait-and-see attitude because there's a lot of uncertainty in the market."
"For the moment," adds Lynette Tan, investment analyst at Phillip Futures in Singapore, "we expect policy decisions from the Fed to influence the gold price more than risk appetite linked to the euro crisis."
The Federal Open Market Committee meets today and tomorrow to decide any changes to US monetary policy.
"We would be quite surprised if we saw no [Fed policy] easing this week," says a note from Jan Hatzius, chief US economist at Goldman Sachs.
"We believe that an extension of Operation Twist could well be insufficient on its own and could thus be followed by additional easing action before long," added Hatzius, suggesting the Fed could consider a "sufficiently large program" of mortgage-backed securities purchases.
However, "the agency MBS market might have more trouble accommodating the Federal Reserve this time" says a note from Barclays. The Barclays economists point out that the Fed will be keen to avoid its actions creating "dislocations" in markets, meaning it could include more US Treasury bond buying in any new round of quantitative easing.
Here in Europe, Spain saw its borrowing costs rise to over 5% for one year – up from 1.985% last month – when it auctioned €2.4 billion of 12-Month bills on Tuesday. A further €639 million of 18-Month bills were sold at an average yield of 5.1%, up from 3.3% at the last similar auction.
Benchmark Spanish 10-year yields eased slightly following the auction, but remained above 7% by Tuesday lunchtime in London.