Gold prices held steady near seven-week highs early Tuesday, after registering their biggest monthly gain in five in July, supported by a slump in the U.S. dollar and political uncertainty. Spot gold was nearly flat at $1,269.30 per ounce at 0358 GMT. It rose 2.2 percent last month, its biggest monthly gain since February. U.S. gold futures for August delivery rose 0.2 percent to $1,269.00 per ounce.

The dollar inched up but still hovered near a 2-1/2 year low versus the euro on Tuesday. Its outlook remained clouded by U.S. political turmoil and doubts about whether there will be another Federal Reserve rate hike this year.

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