Gold prices were flat to slightly higher on Tuesday amid deepening Middle East tensions and ahead of Fed Chair Jerome Powell’s speech due this week, expected to provide more clarity on the rate outlook.
Spot gold edged up 0.2 percent to $1,923.26 per ounce, while U.S. gold futures were up 0.1 percent at $1,935.95.
The U.S. dollar fluctuated in a narrow range as traders took stock of developments in the Middle East.
The Israel-Hamas war continues despite international messages of caution.
Heavy shelling was reported near civilian shelters in Gaza ahead of U.S. President Joe Biden’s visit to Israel on Wednesday to show solidarity.
Meanwhile, after concluding his meeting with the U.S Secretary of State Antony Blinken, the defense minister of Israel Yoav Gallant said that “this will be a long war”.
Treasury yields rose in early European trade ahead of U.S. retail sales data due later in the day.
Traders also await U.S. reports on industrial production, housing starts and existing home sales in the comings days for additional clues on the Fed’s rate trajectory.