WASHINGTON (dpa-AFX) - Gold prices held steady near record high levels on Wednesday as Middle East tensions intensified, and weak U.S. data released overnight bolstered the case for deeper rate cuts.
Spot gold was marginally lower at $2,656.56 per ounce, while U.S. gold futures were up 0.1 percent at $2,680.60.
A slew of data showed on Tuesday that U.S. consumer confidence unexpectedly fell the most in three years in September, house-price growth slowed in July and factory activity slumped more sharply in the mid-Atlantic region this month.
The weak data bolstered the case for deeper rate cuts by the U.S. Federal Reserve.
The U.S. dollar is on the verge of erasing all of its gains this year amid increased bets for another super-sized interest rate cut at the Federal Reserve's next meeting in November.
Investors await Fed Chair Jerome Powell's remarks on Thursday and U.S. inflation data on Friday for further policy cues.
Fed Governor Michelle Bowman said Tuesday that inflationary risks remain, and the Fed should lower interest rates at a 'measured' pace.
She noted that lowering rates too quickly risks unleashing pent-up demand and cash, which would send inflation upward again.
Her comments stand in contrast to commentary from a handful of other policymakers who saw scope for further easing.
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