Gold trimmed earlier losses to trade flat at $4,170 per ounce on Tuesday, as investors assessed escalating Middle East hostilities and awaited the Federal Reserve’s June meeting minutes for clues on monetary policy.
The precious metal had reached a two-week high on Monday after a softer-than-expected US jobs report led markets to scale back expectations for near-term interest rate hikes.
However, persistent inflation concerns suggest the Fed may still maintain a "higher for longer" stance, with traders pricing in a 60% chance of a September rate hike.
Meanwhile, oil prices edged higher after two tankers were struck in the Strait of Hormuz, and Iran stated it would halt peace talks unless President Trump ceased his repeated threats to restart the war.
Elsewhere, China extended its gold-buying streak to 20 months, with reserves at 75.44M oz, while Hong Kong launched a gold clearing system and revived futures trading to boost its regional hub status.