Gold prices were little changed on Tuesday but remained above the psychological level of $2,500 an ounce, amid investor optimism about an imminent U.S. interest rate cut and continued concerns about conflict in the Middle East.
Update prices
Spot gold was steady at $2,515.51 an ounce by 0610 GMT. Prices have risen more than 21 percent this year to an all-time high of $2,531.60 on Aug. 20.
US gold futures fell 0.2 percent to $2,551.
A US rate cut in September is all but certain, but the debate over its size could lead to a wait-and-see stance as investors look to upcoming economic data to confirm their views, said IG market strategist Yip Jun Rong.
According to the CME Group's FedWatch service, traders are 70 percent expecting a 25 basis point rate cut in September, while 30 percent expect a larger 50 basis point cut.
Gold, which does not pay a return, rises as interest rates fall.
San Francisco Federal Reserve President Mary Daly said borrowing costs could be cut by a quarter of a percentage point next month.
Yip added that we expect gold prices to continue their upward trend given its positive performance during previous interest rate cutting cycles by the Federal Reserve (the US central bank), healthy demand from central banks, and its position as a good hedge against geopolitical and economic risks.
Among other precious metals, spot silver rose 0.6 percent to $30.07 an ounce, platinum fell 0.2 percent to $960.10 and palladium rose 0.8 percent to $965.91.
