Gold traders consider rates, Middle East as bullion steadies

Gold held a small decline as traders digested comments from a senior US policymaker that suggested a slower pace of monetary easing may be likely, while haven demand fell amid fading concerns about an escalation in Middle East conflicts.

Bullion was little changed near $2,650 an ounce — just shy of the all-time high reached last month — after fluctuating between small gains and losses in the previous session. Federal Reserve Governor Christopher Waller on Monday said recent economic data signals policymakers can approach subsequent interest-rate reductions with less urgency than they applied at their gathering last month. Lower interest rates are usually seen as bullish for the non-yielding precious metal.

With little US economic data due this week, investors are focused on geopolitics after the Washington Post reported that Israel doesn’t plan on striking Iranian oil or nuclear facilities — a development that potentially takes away some support for gold as haven demand eases.

The precious metal remains more than 25% higher this year, with rate-cut optimism fueling the most recent gains — though traders have in recent weeks pared expectations on the pace of this year’s easing following mixed reports on the US economy. Strong central bank purchases and heightened geopolitical tensions have also supported gold.

Spot gold was little changed at $2,649.52 an ounce as of 8:09 a.m. in Singapore. The Bloomberg Dollar Spot Index was flat, after gaining 0.3% in the previous session. Silver and platinum were steady, while palladium eased.