Gold prices were little changed on Tuesday as investors awaited comments on U.S. economic health from Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen later in the day.

Spot gold was almost unchanged at $1,738.50 per ounce by 0736 GMT, after declining as much as 0.5% earlier in the day as the U.S. dollar strengthened along with Treasury yields. U.S. gold futures were up 0.1% at $1,738.90 per ounce.

"Based on current levels of Treasury yields as well as the dollar, gold might have overshot its fair trading value. From here, it looks increasingly difficult to rally, especially if Treasury yields continue to rise," said Howie Lee, an economist at OCBC Bank.

"This week after the dust is settled and we get a better picture of how individual Fed members are thinking, we will probably have a better idea of Fed's direction from here and that would pave the way for gold's direction."

The U.S. economy is "much improved," Powell said on Monday, but at the same time warned that the recovery was still "far from complete." 

The dollar index was up 0.1% against a basket of currencies, supported by firm U.S. Treasury yields. 

Elsewhere, palladium slipped 1.1% to $2,587.69, trading close to a more than one-year high of $2,755.18 hit on March 18.

"Palladium provides a good reflation alternate because the market is in such a massive deficit and it's projected to be in a deficit in 2021 and the need is high," said Stephen Innes, chief global market strategist at financial services firm Axi.

"You've got a deficit because of the mine closures, but it is going to take a lot longer to repair ... now it's a couple of months, which is going to continue to weigh on the massive deficit we think is building."

Silver fell 0.6% to $25.61 and platinum was down 0.3% to $1,179.32.

(Reporting by Asha Sistla in Bengaluru, Editing by Sherry Jacob-Phillips and Subhranshu Sahu) ((Asha.Sistla@thomsonreuters.com; If within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2808; Reuters Messaging: Reuters Messaging: asha.sistla.thomsonreuters.com@reuters.net))