WASHINGTON (dpa-AFX) - Gold prices held steady on Tuesday as traders closely monitored escalating violence in Syria and awaited key U.S. inflation readings this week that could influence the Fed's rate trajectory.
Spot gold edged up by 0.1 percent to $2,3.24 in European trade while U.S. gold futures were little changed at $2,686.20.
Israel has deployed troops across the Syrian border for the first time since the official end of the Yom Kippur War in 1974 and conducted airstrikes inside Syria.
Israel's Defense Minister Israel Katz said Monday that the Israel Defense Forces are seeking to gain 'complete control over the buffer zone' and seize weapons and 'terrorist infrastructure,' so they can't be used to target Israel.
In economic news, the U.S. NFIB business optimism index for November and U.S. Redbook report are due to be released in the New York session.
Reports on U.S. consumer and producer price inflation are due to be released on Wednesday and Thursday, respectively, while economists expect the European Central Bank to cut interest rates by 25 bps for the third time in a row when it meets on Thursday.
Traders are also leaning towards rate cuts in Canada and Switzerland later this week.
The Federal Reserve's rate decision is due on Dec. 18, with analysts expecting a 25-bps cut. That said, there is some uncertainty about whether the U.S. central bank will continue cutting rates early next year.
According to Chicago Federal Reserve president Austan Goolsbee, the Fed may reach the neutral rate by the end of 2025.
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