Investing.com-- Gold prices fell slightly in Asian trade on Tuesday, having taken limited support from increased unrest in the Middle East, while focus also remained on potential interest rate cuts by the Federal Reserve.
Gold rose on Monday after Israel launched a series of strikes against Rafah in Southern Gaza, a move that complicated ongoing ceasefire negotiations with Hamas. Reports also showed that ceasefire talks between Israel and Hamas yielded little progress.
Gold was also supported by increased speculation over U.S. interest rate cuts following weaker-than-expected nonfarm payrolls data on Friday, which caused steep losses in the dollar. But the greenback found its footing on Tuesday.
Spot gold fell 0.1% to $2,322.65 an ounce, while gold futures expiring in June steadied at $2,330.95 an ounce 01:14 ET (05:14 GMT).
Gold sees some safe haven demand amid Israel-Hamas jitters
Israel’s strike on Rafah pointed to an escalation in the ongoing war with Hamas, and presented little scope for de-escalation in the Middle East. The move drove up some safe haven demand for gold, helping the yellow metal recover past the $2,300 level.
Little progress in ceasefire talks between the two also factored into some safe haven demand for gold.
Still, gold remained more than $100 below record highs hit in April, when the threat of a potential war between Iran and Israel had ramped up safe haven demand. But the yellow metal then saw sharp declines as tensions between the two did not become a full-blown conflict.
Rate cuts in focus, more Fed speakers awaited
The dollar steadied from last week’s losses, limiting any major upside in gold as markets awaited more cues on interest rates from the Fed.
FOMC members Thomas Barkin and John Williams said in separate addresses that while the central bank still planned to cut rates this year, it needed more convincing that inflation was easing.
Minneapolis Fed President Neel Kashkari is now set to speak later on Tuesday.
Other precious metals were mixed. Platinum futures rose 0.5% to $971.75 an ounce, while silver futures fell 0.3% to $27.538 an ounce.
Copper prices stay near 2-year highs
Among industrial metals, copper prices were mixed on Tuesday, but remained in sight of two-year peaks as focus remained on tighter supplies amid Chinese production cuts and sanctions on Russia.
Three-month copper futures on the London Metal Exchange rose 1.1% to $10,044.50 a ton, while one-month copper futures fell 0.2% to $4.5992 a pound.