Gold prices eased slightly on Tuesday after having hit over one-week highs earlier in the wake of dovish comments from Federal Reserve officials and growing concerns about the ongoing Israel-Hamas war.
The Israeli military has said it has called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.
Spot gold slipped 0.2 percent to $1,857.83 per ounce, while U.S. gold futures were up 0.4 percent at $1,871.05.
Gold rallied about 1.6 percent on Monday, its biggest single day jump in five months, as investors sought safe havens amid the Middle East conflict. A weaker dollar and falling bond yields also offered some support following dovish Fed comments.
Federal Reserve Vice Chair Philip Jefferson said in a speech that the central bank needs to “proceed carefully to balance the risk of tightening too much.”
Fed officials Mary Daly and Lorie Logan also recently said that tighter financial conditions could limit future rate hikes.
Amid easing rate concerns, investors now look ahead to the release of U.S. CPI data and minutes of the Fed’s September monetary policy meeting this week for further direction.
A collection of speeches from ECB President Christine Lagarde, Fed’s Raphael Bostic, Christopher Waller, Neel Kashkari and Mary Daly may sway sentiment as the day progresses.