* 10-year U.S. Treasury yields rise after holiday * Fed Chair Jerome Powell to testify later this week * U.S. dollar drops for second consecutive session (Recasts, adds comments, updates details and prices) By Bharat Gautam June 21 (Reuters) - Gold prices were flat on Tuesday as investors kept a keen eye on major central banks' stance on interest-rate hikes to get a clearer outlook for bullion. Spot gold was steady at $1,838.26 per ounce by 0502 GMT, after trading largely range-bound on Monday. U.S. gold futures were little changed at $1,839.90. "The (gold) market is sitting tight as policymakers — after a historic week for global central banks — will get to explain the reasoning behind their decisions this week," said Stephen Innes, managing partner at SPI Asset Management. A series of surprise actions by some of the world's largest central banks fretting about runaway inflation has left bond investors battered. Now, a growing chorus of investors is calling on policymakers to move fast to end the uncertainty. Federal Reserve Chair Jerome Powell will testify in Washington D.C. later this week after the U.S. central bank approved its largest rate hike in more than a quarter of a century, earlier this month. Although bullion is often seen as an inflation hedge, higher interest rates and bond yields increase the opportunity cost of holding gold, which yields nothing. "While the street does not expect Powell to reinvent the policy wheel, we could expect him to reinforce the idea that the Fed is in data-dependent mode. Hence, gold and every interest-rate sensitive risk asset will be subject to headline risk," Innes said. The dollar eased slightly, making greenback-priced bullion more attractive for buyers holding other currencies. However, benchmark U.S. 10-year Treasury yields rose, preventing any gains in gold. "The risk-off sentiment is not supportive, with gold and equity markets moving in tandem. Nevertheless, further weakness coupled with slowing economic growth should enhance gold's haven appeal," ANZ Research said in a note. Spot silver rose 0.3% to $21.65 per ounce, platinum gained 0.3% to $934.07, and palladium climbed 1.4% to $1,871.84. (Reporting by Bharat Govind Gautam in Bengaluru; Editing by Shailesh Kuber, Rashmi Aich and Uttaresh.V)
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