Gold Steady After Cease-Fire Deal as Traders Look to US Data

Gold was steady as a cease-fire deal in the Middle East sapped haven demand, and investors waited for US economic data that will provide clues on the Federal Reserve’s rate path, Bloomberg reported.

Bullion traded near $2,630 an ounce as Israel and Lebanese militant group Hezbollah agreed to a 60-day suspension of hostilities. Anticipation of an agreement had helped push gold down by more than 3% on Monday.

Gold is still up more than 25% this year on easing US monetary policy and heightened geopolitical risks, but has been hit by a stronger dollar this month in the wake of Donald Trump’s election victory. However, it didn’t react significantly on Tuesday to the president-elect’s threat of 25% import tariffs on Canada and Mexico, which buoyed the greenback.

Minutes of the Fed’s November meeting and personal consumption expenditure data — the monetary authority’s preferred gauge of inflation — are among the most significant reports due this week.

Spot gold dipped 0.1% to $2,630.57 an ounce as of 8:17 a.m. in Singapore. The Bloomberg Dollar Spot Index declined 0.1%. Silver, platinum and palladium were all steady.