Gold prices fluctuated in a narrow range on Wednesday as investors waited for key US inflation data to get a sense of the potential size of a Federal Reserve rate cut next month.
Spot gold was steady at $2,635.56 an ounce, as of 0222 GMT, moving largely within a tight $9 range during the session. Bullion hit its lowest level in a week on Tuesday.
U.S. gold futures rose 0.6% to $2,635.80.
“There is a geopolitical element to this, which is that some selling pressure has emerged because of the ceasefire agreement with Israel and Lebanon,” Kyle said Rodda, financial markets analyst at Capital.com.
The US-French-brokered ceasefire between Israel and Iran-backed Hezbollah came into effect at 0200 GMT on Wednesday.
Gold has traditionally been viewed as a safe haven during periods of economic and geopolitical uncertainty, including trade wars and other conflicts.
“In the long term, I think Trump's trade war could be positive for gold due to increased debt and some dedollarization,” Rodda added.
Investors digested a handful of economic data Tuesday indicating the economy remained on solid footing.
Federal Reserve officials were divided on the question of further rate cuts at their meeting earlier this month, but agreed to limit guidance on the future direction of U.S. monetary policy.
Markets currently see a 63% chance that the US Federal Reserve will cut rates by 25 basis points in December, according to the CME Group's FedWatch tool.
Traders will closely monitor the Core PCE Index, Initial Jobless Claims and GDP (First Revision) figures, scheduled for release later today.
Elsewhere, China's net gold imports via Hong Kong in October fell from September and were down 43% from a year earlier, the data showed.
Spot silver was down 0.1 percent at $30.39 an ounce, platinum was flat at $927.45 and palladium was down 0.4 percent at $973.50.
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