Gold prices were steady on Tuesday, as markets weighed developments in the Middle East conflict and interest rate expectations ahead of key U.S. inflation data.
Gold reversed course after hitting a two-week high earlier on Monday, as the U.S. dollar ticked up in anticipation of the Federal Reserve's last policy meeting minutes due later this week.
Spot gold was down 0.6% at $4,148.73 an ounce, after hitting $4,202.13, its highest since June 22 earlier in the session.
U.S. gold futures for August delivery rose 0.8% to $4,160.40 per ounce.
The U.S. dollar gained 0.2%, making greenback-priced bullion more expensive for holders of other currencies.
Saxo Bank analyst Ole Hansen said bullion is in a consolidation phase after having risen more than 2% last week, snapping a four-week slide after weak U.S. job growth data reduced bets for rate hikes.
Traders see about a 56% chance of a rate increase in September, down from more than 60% before the data, according to the CME FedWatch tool.
A further easing in rate hike expectations is needed to support bullion, which for now continues to consolidate, said Hansen.
Higher interest rates tend to pressure the non-yielding metal. "Gold is trying to build a base with support in the $3,900-$4,000 range, while numerous levels of resistance await ahead of the big one, which remains the 200-day moving average at $4,485," said Hansen.
The Fed's June 16-17 meeting minutes, the first chaired by Kevin Warsh, due on Wednesday, could give traders further insights into policymakers' rate outlook.
J.P. Morgan, in a note on Friday, said that demand for gold from key sectors would not be as strong as expected, with prices limited to $4,300/oz in the third quarter and $4,500 in the fourth quarter of this year.
Among other metals, spot silver fell 0.7% to $61.96 an ounce after earlier hitting its highest since June 23.
Platinum declined 0.2% to $1,635.47 an ounce and palladium rose 0.1% to $1,275.21 an ounce.
