WASHINGTON (dpa-AFX) - Gold prices traded lower on Tuesday as the dollar edged up slightly supported to a degree by heightened geopolitical tensions in the Middle East.
Spot gold dipped 0.3 percent to $2,510.91 per ounce, while U.S. gold futures were down 0.4 percent at $2,544.65.
The risk of a wider conflict in the Middle East has lessened in the short term but Iran still poses a significant danger as it considers striking Israel, America's top general, Air Force General C.Q. Brown, said on Monday.
Elsewhere, Ukraine said it has a new long-range weapon to strike deep into Russia after a wave of Russian missiles and drones targeted Ukraine's electrical infrastructure in the largest such attack in weeks.
Trading later in the day may be impacted by reaction to a report on U.S. consumer confidence for August, although activity may be somewhat subdued ahead of the release of more closely watched PCE inflation data on Friday that could reinforce that long-awaited rate cuts are coming soon.
The Fed's favorite measure of underlying inflation is seen rising 0.2 percent in July for a second month, pulling the three-month annualized rate of so-called core inflation down to 2.1 percent.
Fed Bank of San Francisco President Mary Daly on Monday said it's appropriate to begin cutting rates and the 'most likely' path ahead is for inflation to continue to slow gradually and for the labor market to add jobs at a 'steady, sustainable' pace.
Her Richmond counterpart Thomas Barkin said he was taking a 'test-and-learn' approach to rate reductions, likely pointing to his support for an initial quarter-percentage-point rate reduction.
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