Gold prices fell slightly globally during these moments of trading, today, Tuesday, as this coincides with the increase in bets that the US Federal Reserve will cut interest rates later this year and the increase in demand for bullion as a safe haven in light of the ambiguity of the ceasefire in Gaza.

“Gold has been slowly building a base over the past week to show demand is hovering around $2,280,” said Matt Simpson, chief analyst at City Index. “The Fed continues to build momentum around the next move, which could be a rate cut.”

Meanwhile, New York Federal Reserve President John Williams confirmed on Monday that at an unspecified point the US central bank will lower its interest rate target.

Richmond Federal Reserve Bank President Tom Barkin said the U.S. economy should slow in the coming months, a development that would help cool inflation, noting that recent volatility in U.S. economic data justifies the Fed's approach to interest rates.

Traders are pricing in a 65% chance of a Fed rate cut in September, according to the Investing Saudi Arabia U.S. Rate Watch tool. Lower interest rates make holding non-interest-bearing gold more attractive.

Simpson added that fears that the Gaza ceasefire talks could collapse also helped the bullion.

Investors are also closely watching the latest developments in the Middle East conflict. The Palestinian Islamist group Hamas on Monday agreed to a ceasefire proposal in Gaza from mediators, but Israel said the terms did not meet its demands and pressed ahead with strikes in Rafah as it plans to continue negotiations on a deal.

Gold at settlement yesterday

Gold futures extended gains on Monday after two straight weeks of losses, as markets were optimistic that the Federal Reserve would cut interest rates soon after the April monthly jobs report showed both employment and wage growth slowed.

At settlement, June gold futures rose 1%, or $22.6, to $2,331.2 an ounce, the highest level since the end of the April 29 session ($2,357.7).

Gold and dollar now

Gold futures are now down 0.1% at $2,329 an ounce.

Meanwhile, spot gold futures fell by about 0.15% to $2,320 an ounce, after rising more than one percent in the previous session.

On the other hand, the dollar index rose by about 0.15% to 105.080 points.

Other minerals

Spot silver fell 0.4 percent to $27.35 an ounce.

Platinum gained 1 percent to $963.60 and palladium rose 0.5 percent to $982.18.